The production-based method of national accounting sums up the ________.
A) expenditure incurred by domestic and foreign economic agents on domestic products
B) value that is added by each domestic firm in the production process
C) income earned by each factor of production by participating in the production process
D) total revenue earned by all the firms in the economy

Question

Quizplus · Accepted Answer

The production-based method of national accounting calculates the total value added by each domestic firm in the production process. This includes the value of inputs used in production minus the cost of these inputs, resulting in the value added. This method is also known as the value-added approach.

The Production-Based Method of National Accounting Sums Up the ________