The value-added approach of calculating GDP:
A) is an alternative, and equally valid, way of avoiding the problem of double-counting.
B) breaks down the total amount paid for a product to see how much of it was created at each step of the production process.
C) is especially useful when thinking about the services involved in the resale of existing goods.
D) All of these are correct.

Question

Quizplus · Accepted Answer

The value-added approach of calculating GDP breaks down the total amount paid for a product to see how much of it was created at each step of the production process, which helps to avoid double-counting. This approach is especially useful when thinking about the services involved in the resale of existing goods. Therefore, all of the given choices are correct.

The Value-Added Approach of Calculating GDP