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Find net value added at market price(i) fixed capital good with a life span of 5 years = 15(ii) raw materials = 6(iii)sales = 25(iv) net change in stock = -2(v) taxes on production = 1 |
Answer» The NVAMP is 14Explanation: The Net VALUE ADDED at Market Price (NVAMP) is computed as: Net Value added at market price (NVAMP) = Sales + Net Change in Stock - Intermediate Consumption - Consumption of fixed capital where Sales is 25 Net Change in stock is -2 Intermediate Consumption involves the non- factor inputs like raw MATERIALS. So, raw materials would be subtracted. Intermediate consumption is 6 Consumption of fixed capital = 15/5 Consumption of fixed capital = 3 So, putting the values above: Net Value added at market price (NVAMP) = 25 + (-2) - 6 -3 Net Value added at market price (NVAMP) = 23 -9 Net Value added at market price (NVAMP) = 14 You can learn more from here about NVAMP You can learn more from here about NVAMP |
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