Asked by robin singh on May 13, 2024
Verified
Value added in a nation equals
A) the value of intermediate products.
B) the value of investment goods.
C) the difference between production and income.
D) GDP.
Value Added
The increase in the value of a product or service as a result of a particular process, excluding the costs of raw materials and energy.
Intermediate Products
Intermediate products are goods that are used as inputs in the production of other goods or services, rather than being sold directly to consumers.
Investment Goods
Physical goods acquired to create value over time by being used in the production of other goods or services.
- Recognize the components of GDP (consumption, investment, government purchases, net exports) and their impact on the economy.
- Recognize the importance of avoiding multiple counting in GDP calculations.
Verified Answer
KJ
Kisanthy JeyakumarMay 15, 2024
Final Answer :
D
Explanation :
Value added in a nation is defined as the market value of the goods and services produced by a country in a given period, minus the value of intermediate goods used in production. This is equivalent to GDP, hence the correct answer is D.
Learning Objectives
- Recognize the components of GDP (consumption, investment, government purchases, net exports) and their impact on the economy.
- Recognize the importance of avoiding multiple counting in GDP calculations.