Subtracting the purchase of intermediate products from the value of the sales of final products determines the amount of:
A)net investment for a business.
B)profit and cost.
C)value added from the economic activity.
D)surplus or deficit from the economic activity.

Question

Quizplus · Accepted Answer

This calculation determines the value added from the economic activity, which is the difference between the value of the final product sold and the cost of the intermediate products used to produce it. This value added represents the contribution of the business to the overall economy. Option A, B, and D are not correct because they do not accurately describe the result of this calculation.

Subtracting the Purchase of Intermediate Products from the Value of the Sales