Gross and Net Value Added Quiz
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Questions and Answers

What is the formula for Gross Value Added (GVA)?

  • GVA = value added - depreciation
  • GVA = value added / depreciation
  • GVA = value added + depreciation (correct)
  • GVA = value added * depreciation

How is Net Value Added calculated?

  • Net Value Added = Gross Value Added + depreciation
  • Net Value Added = Gross Value Added / depreciation
  • Net Value Added = Gross Value Added – depreciation (correct)
  • Net Value Added = Gross Value Added * depreciation

In the milk-cheese example, what is the Net Value Added if the Gross Value Added is Rs 410 and depreciation is Rs 10?

  • Rs 390
  • Rs 400 (correct)
  • Rs 405
  • Rs 420

Study Notes

Value Added Calculations

  • The formula for Gross Value Added (GVA) is: GVA = Value of Output - Intermediate Consumption
  • Net Value Added (NVA) is calculated by subtracting Depreciation from Gross Value Added (GVA): NVA = GVA - Depreciation

Example: Milk-Cheese Production

  • In the milk-cheese example, if the Gross Value Added (GVA) is Rs 410 and Depreciation is Rs 10, the Net Value Added (NVA) would be: NVA = Rs 410 - Rs 10 = Rs 400

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Description

Test your knowledge about gross and net value added with this quiz. Learn how to calculate these important economic indicators.

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