--%>
Assignment Help - homework help

Estimating N.I. by product by value added technique

Describe the steps taken in estimating N.I. by product/ value added technique?

Answer:

A) Classify all production units: Locate the domestic territory into different industrial sectors that is, primary, secondary and tertiary sectors.

B) Estimate value of output: Since sum of sales and change in stock of all 3 sectors.

C) Estimate value of intermediate consumption: The sum of value of intermediate consumption of all 3 sectors.

D) Estimate GVAmp: Value of output – Intermediate consumption.

E) Estimate NVAmp: Deduct the value of depreciation from the GVAmp. (that is, NVAmp = NDPmp).

F) Estimate NDPfc: Subtract the value of Net Indirect Taxes from NDPmp.

G) Estimate NNPfc: Add the value of Net Factor Income from Abroad with NDPfc to arrive  NNPfc or the N.I.

   Related Questions in Microeconomics

  • Q : Output level at demand in a

    Babble-On maintains world-wide patents for software which translates any of 314 spoken languages within text, with automatic audio and text translations in any of the other three-hundred-thirteen languages. Babble-On will never intentionally produce as well as sell vo

    		•
  • Q : Economic losses driven down to zero

    Exit by a competitive industry will arise till economic: (1) profits are driven to zero. (2) profits counterbalance accounting losses. (3) incomes are equalized for comparable workers. (4) costs are sufficiently below accounting losses. (5) losses are driven down to z

    		•
  • Q : Neoclassical Production and Costs

    Normal 0 false false

    		•
  • Q : Define production possibility curve or

    Production possibility curve or PPC: PPC exhibits different combination of a pair of goods, that can be produced with the given resources and method of production, that are fully and proficiently utilized.

    		•
  • Q : What is fiscal deficit Fiscal deficit :

    Fiscal deficit: When TE (RE + CE) > TR (RR + CR) of the government, excluding borrowing. It is termed as fiscal deficit.

    		•
  • Q : Problem on equal marginal utilities per

    Substitution takes place when prices change and hence demand curves are negatively-sloped since of the behavior of consumers which most directly underpins the law of: (1) Equivalent marginal utilities per dollar. (2) Diminishing net utility. (3) The income effect. (4)

    		•
  • Q : Market structure in an automotive

    What type of a market structure in an automotive industry?

    		•
  • Q : Monopsony power in the labor market The

    The firm with monopsony power in labor market: (1) Can hire any significant amount of labor devoid of affecting the wage. (2) Can pay any wage it wishes. (3) Must pay a higher wage when it hires more labor. (4) Must pay a lower wage when it hires more

    		•
  • Q : Explain about Welfare Recipients When

    When the ratio of [tax burdens upon you] / [taxes upon all taxpayers] is less than the ratio [benefits to you by government programs] / [benefits of government programs realized through all residents of the country], in that case it seems reasonable to explain you as

    		•
  • Q : Barriers to entry A barrier to entry

    A barrier to entry is: (w) an impediment for firms to expand their output capacity. (x) a limit to the number of entrants to a monopolist industry. (y) an obstacle which makes this hard for new firms to enter the industry. (z) the fixed cost to a pote

    		•