ASSIGNMENT SUBMISSION

a. Raw cotton used by a spinning mill - Intermediate goods, helps in further production.
b. Sewing machine purchased by a tailoring firm – Intermediate goods, helps in further production.
c. Exhaust fans used at home - Final goods, used for final consumption.
d. Furniture purchased by a household – Final goods, meant for final consumption.
e. Food cooked at home – Final good, for final consumption.
f. Rice purchased by a grocer – Intermediate goods, for resale purpose.
g. Electricity used in a factory - Intermediate goods, meant for intermediate consumption.
h. Typewriter used in an office - Intermediate goods, meant for intermediate consumption.
i. Leftover stock of coal with a steel mill – final – capital goods – meant for capital formation.
j. Seeds purchased by a farmer – final – capital goods – meant for capital formation
k. An aircraft purchased by an airline – final – capital goods – meant for investment purposes.
l. A bus purchased by a school. – final – consumption goods – meant for final consumption.
m. Expenditure on R&D by TATA – intermediate goods – for satisfaction of wants.
n. Expenditure on maintenance of plant and machinery – intermediate goods – meant for
satisfaction of wants.
o. Advertisement expenses incurred by Airtel on promotion of its product – final- capital goods –
meant for capital formation.

Q2 . a. NVAmp – NIT = NVAfc

b. NVOMP + IC – DEPRECIATION = NIT

c. GVAFC= NVOFC + DEPRECIATION – IC

d. GVAMP= NVAMP + DEPRECIATION

e . NVAMP = NVOFC+NIT – IC
a. NVA at FC = GVA at MP
b. GVO at MP= GVO at FC
c. NVA at FC= NVA at MP

a. When NIT is added.

b. When NIT is subtracted.
c. When NIT is added.

Q4. VALUE OF OUTPUT ADDED = Net value addition to factor cost + Intermediate Consumption+
Depreciation + EXCISE DUTY – SUBSIDY = 250+150+30 + 20 – 10 = 440 LAKHS

Q5. NVAMP=SALES + CHANGE IN STOCK – IC – CONSUMPTION OF FIXED CAPITAL.

= 60 + (5-10) -20 – 6

= 60 – 5 – 26

= 60 – 31

= 29 CRORES.

Q6) A. VALUE OF OUTPUT= SALES + CHANGE IN STOCK – IC

= 1000+ ( 200-200)

= 1000 CRORES.
B. NVAFC= SALES – IC – NIT – CFC

= 1000-50-600-(100-4)

= 1000-746

= 254 CRORES.

Q7. GVAFC= SALES + (CLOSING STOCK – OPENING STOCK) - IC

= 500 – 10- 300

= 500-310 = 190 + NIT = 190+ 40

= 230 CRORES.

Q8. SALES = NVAFC + IC+ DEPRECIATION – NET ADDITION TO STOCK + (SALES TAX – SUBSIDY)

= 300+ 10+ 100 + 25 – (-20)

= 410+25+20 = 435+20

= 455 CRORES.

Q9. NVAFC= SALES = VALUE OF OUTPUT – CHANGE IN STOCK

= 500-50 = 450

= SALES - RAW MATERIALS + (EXPORT DUTY - IMPORT DUTY )

= 450 - 300 + 30 – 20

= 140 LAKHS .