To calculate value added, we need to subtract
A) only the cost of domestically produced intermediate inputs.
B) only the cost of foreign-produced intermediate inputs.
C) the cost of domestic- and foreign-produced intermediate inputs.
D) total imports.
E) the cost of all goods and services exported.

Question

Quizplus · Accepted Answer

Value added is calculated by subtracting the cost of all intermediate inputs, both domestic and foreign, from the total output.

To Calculate Value Added, We Need to Subtract