Identify the net contribution made by a firm from the following :
Domestic sales + Export + Change in stock - value of intermediate consumption.
Identify the net contribution made by a firm from the following :
Domestic sales + Export + Change in stock - value of intermediate consumption.
Solution
✅ Correct Option: 2
Value added -> The formula 'Domestic sales + Export + Change in stock - value of intermediate consumption' represents the contribution of a firm to production. Here, (Domestic sales + Export + Change in stock) gives the total value of output, and subtracting intermediate consumption (raw materials, inputs purchased from other firms) gives us Value Added. This measures the value created by the firm in the production process. -> correct
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