CBSE 2025, Set 1

Question

(a) (i) Suppose there are only three firms in an imaginary economy, viz. X, Y and Z. During a year, the following transactions took place in the economy:
(I) Firm X sold goods worth ₹ 20,000 to Firm Y and ₹ 12,000 to Firm Z.
(II) Firm Y sold goods worth ₹ 11,000 to Firm X and ₹ 35,000 to Firm Z.
(III) Firm Z sold goods worth ₹ 57,000 to households for final consumption.

On the basis of the given transactions, calculate the value of Gross Domestic Product at Market Price ($GDP_{MP}$) in the economy.

Edvaya · Accepted Answer

The correct answer is Subjective. **Calculation of $GDP_{MP}$ (Value Added Method):**

| Firms | Value of Output (in ₹) (i) | Intermediate Consumption (in ₹) (ii) | Value Added {(i) - (ii)} (in ₹) |
|---|---|---|---|
| X | $20,000 + 12,000 = 32,000$ | $11,000$ | $21,000$ |
| Y | $11,000 + 35,000 = 46,000$ | $20,000$ | $26,000$ |
| Z | $57,000$ | $12,000 + 35,000 = 47,000$ | $10,000$ |
| **Total** | **1,35,000** | **78,000** | **57,000** |

**Gross Domestic Product at Market Price ($GDP_{MP}$) = ₹ 57,000**

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Economics > Introductory Macroeconomics > National Income Aggregates

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