The difference between the values of final production and value of the inputs is called:
A)the surplus of the final goods and services
B)the profit of the final goods and services
C)the value added of the final goods and services
D)the gross product of the final goods and services

Question

Quizplus · Accepted Answer

The difference between the value of final production and the value of inputs is called the value added of the final goods and services. This means that the value added represents the amount of value that has been created in the production process. It is calculated by subtracting the cost of inputs from the price of the final product. The value added is an important economic indicator as it measures the contribution of each production process to the overall economy.

The Difference Between the Values of Final Production and Value