2.2.1 - The Product or Value Added Method
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Practice Questions
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Define value added.
💡 Hint: Think about what is produced after deducting costs.
What is the definition of intermediate goods?
💡 Hint: Consider what ingredients would be in a recipe.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does value added refer to?
💡 Hint: Consider the contribution after subtracting costs.
True or False: Gross Value Added accounts for depreciation.
💡 Hint: Think about what 'gross' means.
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Challenge Problems
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A company produces Rs 1000 worth of products, with Rs 300 in intermediate goods. They expect their capital to depreciate by Rs 50 over the year. Calculate both GVA and NVA.
💡 Hint: Remember to follow the step for both GVA and NVA calculations.
Consider a bakery with original inventory of Rs 200. They produce Rs 800 worth of goods but sell Rs 600. What is their change in inventory?
💡 Hint: Calculate the difference between production and sales to understand how inventory shifts.
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