Macro

National Income

Medium

A firm produces Rs 1000 worth of goods per year. Rs 200 is the value of intermediate goods used by it during the year and Rs 100 is the value of capital consumption. What is the net value of total production?

Rs 1000 per year.

Rs 900 per year.

Rs 700 per year.

Rs 100 per year.

✅ Correct Option: 3

Option 1 -> This represents only the gross output without deducting intermediate goods or depreciation.

Option 2 -> This accounts for only the capital consumption but ignores the intermediate goods used.

Option 3 -> This correctly deducts both intermediate goods (Rs 200) and capital consumption (Rs 100) from gross output (Rs 1000).

Option 4 -> This represents only the capital consumption value, not the net production value.

Hence, Option 3: Rs 700 per year -> Net value of total production = Gross output - Intermediate goods - Capital consumption = Rs 1000 - Rs 200 - Rs 100 = Rs 700. This represents the actual value addition by the firm after accounting for inputs used and depreciation of capital assets. -> correct

2023: 29 May Shift 2

In case of an unexpected fall in turnover of a firm, who is producing a certain commodity. There will a situation of _______________

Choose the correct option.

2026: 19 May Shift 2

Personal Disposable Income (PDI) is calculated as:

2026: 13 May Shift 2

When the income is being spent on the goods and services produced by the firms, it takes the form of ________ received by the firms.

2023: 1 June Shift 1

Match List - I with List - II.

	List - I		List - II
(A)	Value of output	(I)	Sales + Change in stock
(B)	Operating surplus	(II)	Sales + Change in stock - Intermediate consumption
(C)	Profit	(III)	Rent + Interest + Royalty + Profit
(D)	Value added	(IV)	Corporation tax + Undistributed profit + Dividend

Choose the correct answer from the options given below :

2022: 10 Aug Shift 2

Which of the following is considered as an intermediate good ?

2025: 22 May Shift 1

Which of the following statements are true in macroeconomics?

(A). GVA at factor costs + Net production taxes = GVA at basic prices.

(B). GVA at basic prices + Net product taxes = GVA at market prices.

(C). GNP ≡ GDP - Net factor income from abroad.

(D). NNP ≡ GNP – Depreciation.

Choose the correct answer from the options given below:

A firm produces Rs 1000 worth of goods per year. Rs 200 is the value of intermediate goods used by it during the year and Rs 100 is the value of capital consumption. What is the net value of total production?

Solution

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