Calculate Gross Value Added at Factor Cost:
| (i) | Units of output sold (units) | 1000 |
| (ii) | Price per unit of output | 30 |
| (iii) | Depreciation(Rs.) | 1000 |
| (iv) | Intermediate cost (Rs.) | 12000 |
| (v) | Closing stock (Rs.) |
Calculation of Gross Value Added:
GAV at factor cost = Total value of sales + change in stock – intermediate consumption – net indirect tax
=(1000*30) + (3000-2000) - 12000 - (3500+2500)
= Rs 13,000
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.
| Autonomous consumption | Rs. 100 |
| Marginal Propensity to consume | Rs. 0.80 |
| Investment | Rs. 50 |
Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give examples.
