Question:
Which one of the following is a component of the Gross Value Added (GVA) at basic price?
(1) Intermediate consumption
(2) Changes in inventories/stocks
(3) Acquisition of valuables
(4) Taxes less subsidies on the product
(5) Other taxes less subsidies on production
Correct Answer:
(5)
Answer Explanation:
Under the Income Approach, Gross Value Added (GVA) at basic prices is calculated by summing the incomes earned by the factors of production: Compensation of Employees + Gross Operating Surplus + Gross Mixed Income + (Other taxes on production – Other subsidies on production).
Topic: National Income Year: 2019
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