Question

Value Addition = ____ - Value of Intermediate Consumption.
(Choose the correct option(s) to complete the stated formula.)
(i) Domestic sales
(ii) Sales - change in stock.
(iii) Value of output
(iv) (Number of units produced) x (Price per unit)

• A. (i) and (ii)
• B. (ii) and (iii)
• C. (ii), (iii), and (iv)
• D. (iii) and (iv)

Hint:

In economics, value addition is a measure of the contribution made by the production process, excluding intermediate goods.

Answer 1

The Correct Option is C

To calculate value addition, we subtract the value of intermediate consumption from the total output. Intermediate consumption includes domestic sales, sales change in stock, and the value of output, which can be computed by multiplying the number of units produced by the price per unit.