a) Given the following data, find Net Value Added at Factor Cost by Sambhav (a farmer) producing Wheat:
| Items |
(₹ in crore) |
|
| i) | Sale of wheat by the farmer in the local market | 6800 |
| ii) | Purchase of Tractor | 5000 |
| iii) |
Procurement of wheat by the Government from the farmer |
200 |
| iv) |
Consumption of wheat by the farming family during the Year |
50 |
| v) |
Expenditure on the maintenance of existing capital stock |
100 |
| vi) |
Subsidy |
20 |
(3 Marks)
Answer
a) Net Value Added at Factor Cost = NVAfc
NVAfc = Sale of wheat by the farmer in the local market + Procurement of wheat by the government from the farmer + Consumption of wheat by the farming family during the year + Subsidy - Expenditure on the maintenance of existing capital stock
NVAfc =(i)+(iii)+(iv)+(vi)-(v)
NVAfc=₹6800+₹200+₹50+₹20-₹100
Net Value Added at Factor Cost =₹6,970crore
b)State any two components of ‘Net Factor Income from Abroad’.
(2 Marks)
Answer
b) Component of net factor income from abroad are-
i) Net compensation of employees
ii) Net Retained Earnings
