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Economics · 2023 · 3 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income3 marksUnderstandshort answer
CBSE 2023 · Region 3 · Set 1 · Q11
(a) Differentiate between ‘Value of Output’ and ‘Value Added’.
(a)
Differentiate between ‘Value of Output’ and ‘Value Added’.
OR
(b)
Justify the following statement :
“Depreciation is a fall in the value of an asset due to expected obsolescence.”
Marking-scheme solution
Value of output refers to the total money value of goods and services produced during a given period of time.
Value of output = (Number of units produced) × (Price per unit)
Whereas;
Value Added refers to the excess of ‘Value of Output’ over the ‘Value of Intermediate Consumption’.
Value Added = Value of Output – Value of Intermediate Consumption
Yes. Depreciation is the continuous fall in the value of an asset due to expected obsolescence. Value of fixed assets may fall owing to change in technology over a period of time.
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CBSE Class 12 Economics past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.