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If a trader buys goods for ₹7,80,000, sells them for ₹9,25,000, and spends ₹22,000 on transport service and ₹18,000 on packing material, what is his GVA at market prices?

Answer and explanation

Correct answer: ₹1,05,000

The trader’s gross trading margin is sales minus the purchase price of goods: ₹9,25,000 − ₹7,80,000 = ₹1,45,000. Transport service and packing material are additional intermediate inputs costing ₹22,000 + ₹18,000 = ₹40,000. Therefore, GVA at market prices = ₹1,45,000 − ₹40,000 = ₹1,05,000, so option B is correct.

Related tags

EconomicsTrading-MarginIntermediate-ConsumptionValue-Added-MethodGdp And WelfareNational Income And Related AggregatesClass 11 Mcq

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