GDP can be calculated by the value-added approach, which
A)is useful in avoiding double counting.
B)includes only the value-added portion from the sale of goods and services.
C)includes the revenue a firm receives from selling a product minus the amount paid for goods purchased from other firms.
D)All of the above correct.

Question

Quizplus · Accepted Answer

The value-added approach is designed to avoid double-counting by measuring the actual value that is added to goods and services at each stage of production. It includes only the portion of the value that is created by each firm, which is the revenue received from selling a product minus the cost of goods purchased from other firms. Therefore, all three options (A, B, and C) are correct.

GDP Can Be Calculated by the Value-Added Approach, Which