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Non-Competitive Markets
Question
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Show the sum of value added is equal to sum of factor incomes.

Answer

Since value added by joint efforts of factors of production in the production process is distributed among factors as factor income in the form of rent, wages, interest and profit, therefore, sum of value added is equal to sum of factor incomes.

Sponsor Area

Some More Questions From Non-Competitive Markets Chapter

Distinguish between microeconomics and macroeconomics.
Give an example of showing the difference between microeconomics and macroeconomics. 

National Income (NI)

Final Goods and Intermediate Goods 

Giving reasons categorise the following into intermediate products and final products:
(i) Furniture purchased by a school
(ii) Chalks, dusters purchased by a school.

Consumption Goods and Capital Goods

Flow and Stock Concepts

Giving reasons categorise the following into stocks and flows:
(i) Losses (ii) Capital (iii) Production (iv) Wealth. 

Gross Investment and Net Investment

Domestic (Economic) Territory

National Income at Current and Constant Prices (Nominal and Real NI)