Asked by Carlos Murray on Jun 07, 2024
Verified
The value added for a nation equals
A) all goods and services less the intermediate goods used in production.
B) the market value of all products and services less the market value of all intermediate goods.
C) input costs plus the value of intermediate goods.
D) the market value of intermediate goods less the value of all goods and services.
Value Added
The increase in worth of a product or service as a result of a particular process, excluding the cost of initial raw materials.
Intermediate Goods
Products used as inputs in the production of final goods, such as raw materials or components, not sold directly to end consumers.
Market Value
The prevailing rate at which a good or service is available for purchase or sale in the open market.
- Acquire knowledge on the techniques used for computing GDP, with emphasis on the value-added method.
Verified Answer
SH
Shane HatusaJun 08, 2024
Final Answer :
B
Explanation :
The value added for a nation equals the market value of all products and services produced within the nation less the market value of all intermediate goods used in their production. This calculation avoids double counting by only considering the final value of goods and services, excluding the value of inputs used in their production.
Learning Objectives
- Acquire knowledge on the techniques used for computing GDP, with emphasis on the value-added method.