If, during 2011, the Republic of Sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and total sales of all goods and services $90 billion, the value of intermediate goods purchased during 2011 in Sildavia was:
A) $42 billion.
B) $30 billion.
C) $12 billion.
D) $4 billion.

Question

Quizplus · Accepted Answer

The value of intermediate goods is calculated by subtracting the value added from the total sales. In this case, $90 billion (total sales) - $78 billion (value added) = $12 billion.

If, During 2011, the Republic of Sildavia Recorded a Value