To calculate the GDP at Market Prices using the given information, follow these detailed steps:
1. Understand the components involved:
- Gross Value Added (GVA) at Factor Cost: [tex]\( R120,000 \)[/tex]
- Other Taxes on Production: [tex]\( R5,000 \)[/tex]
- Other Subsidies on Production: [tex]\( R2,000 \)[/tex]
- Taxes on Production: [tex]\( R15,000 \)[/tex]
- Subsidies on Production: [tex]\( R10,000 \)[/tex]
2. Formulate the equation:
The formula to calculate GDP at Market Prices is:
[tex]\[
\text{GDP at Market Prices} = \text{Gross Value Added (GVA) at Factor Cost} + \text{Other Taxes on Production} - \text{Other Subsidies on Production} + \text{Taxes on Production} - \text{Subsidies on Production}
\][/tex]
3. Substitute the given values into the equation:
[tex]\[
\text{GDP at Market Prices} = 120,000 + 5,000 - 2,000 + 15,000 - 10,000
\][/tex]
4. Perform the arithmetic operations step-by-step:
[tex]\[
120,000 + 5,000 = 125,000
\][/tex]
[tex]\[
125,000 - 2,000 = 123,000
\][/tex]
[tex]\[
123,000 + 15,000 = 138,000
\][/tex]
[tex]\[
138,000 - 10,000 = 128,000
\][/tex]
5. Conclusion:
Therefore, the GDP at Market Prices is [tex]\( R128,000 \)[/tex].
Given the steps and calculations above, the correct answer to the question is:
GDP at Market Prices: [tex]\( R128,000 \)[/tex]
Feel free to use this information for multiple-choice questions or any other purpose required!
