Question

Table 3 is a hypothetical industrial column for cotton dresses produced in Namibia during 2010.

Use the data to answer the questions below.

Table 3

Activity	market value	value added
(a)Cotton farmers produce cotton	100 000
(b) Weavers produce cotton cloth		150 000
(c) Dressmakers produce unlabelled dresses	300 000
(d) Shops sell labelled dresses to consumers		400 000
Totals:

(a) Copy Table 3 and fill in the gaps.

(b) What is the cotton dress industry’s contribution to Namibia’s GDP? Provide a reason for your answer.

(c) List the intermediate products in this industrial column.

Answer 1

We know that Value-added is the difference between the price of product or service and the cost of producing it. So we can calculate it by subtracting the market value of inputs from the market value of produce.

a) The table is shown as

b) Cotton dress industry's contribution to Namibia's GDP = $ 700,000,000. This is shown jn the table by both value of final goods produced or the sum of the value added.

c) Here the intermediate products are:- Cotton, cotton cloth, and unlabelled dresses. This is because these products are used for further production.