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Measuring National Income · Question 12 of 69

Question 12

MediumOriginal question

A tailor buys cloth for ₹2,000 and thread for ₹100, and sells the shirts he makes for ₹3,500. His value added is

Options for question 12

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Intermediate consumption = 2,000 + 100 = 2,100.

  2. Value added = 3,500 − 2,100 = ₹1,400.

Worth noting

₹1,500 forgets the thread, which is also an input used up.

Concept
Value added by a tailor
Typical time
70 s
Your time
—
The rule this testsValue added method and double counting
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