Check sibling questions

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

       

         

 

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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.