Suppose firm A sold raw material to firm B for rupees 1000 and the firm C for rupees 600 . firm B sold its product partly to private consumers for rupees 800 and the remaining product was exported for rupees 600. firm C part Of its product to the government for rupees 500 for public consumption and the remaining product worth rupees 500 was unsold stock left with it (assume that firm A buys no raw material) then find Savings and investment?
Padma,
Saving = Total Value Added - Consumption
= 2400 - 1300
Saving = Rs 1100.
Total Value Added = Value added by Firm A + Value added by Firm B + Value added by Firm C.
= 1600 + 400 + 400
= Rs 2400
Consumption = Sale to Private Consumers + Sale to Government
= 800 + 500
Consumption = Rs 1300
Investment = Unsold Stock + exports
= 500 + 600
Investment = Rs 1100
Saving = Total Value Added - Consumption
= 2400 - 1300
Saving = Rs 1100.
Total Value Added = Value added by Firm A + Value added by Firm B + Value added by Firm C.
= 1600 + 400 + 400
= Rs 2400
Consumption = Sale to Private Consumers + Sale to Government
= 800 + 500
Consumption = Rs 1300
Investment = Unsold Stock + exports
= 500 + 600
Investment = Rs 1100