Value added is
A)used to measure GDP under the spending approach
B)the final sales value of a firm's output
C)the value of a firm's output plus the value of intermediate goods used in production
D)the value of a firm's output minus the value of intermediate goods used in production

Question

Quizplus · Accepted Answer

Value added is the value of a firm's output minus the value of intermediate goods used in production. This is because intermediate goods are not included in the calculation of GDP as they are already included in the value of final goods. Value added is used to measure a firm's contribution to GDP under the value-added approach.

Value Added Is