Podcast
Questions and Answers
What is the formula for Gross Value Added (GVA)?
What is the formula for Gross Value Added (GVA)?
How is Net Value Added calculated?
How is Net Value Added calculated?
In the milk-cheese example, what is the Net Value Added if the Gross Value Added is Rs 410 and depreciation is Rs 10?
In the milk-cheese example, what is the Net Value Added if the Gross Value Added is Rs 410 and depreciation is Rs 10?
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.
