The value of a producer's output minus the value of the inputs it purchases from other producers is called the producer's
A)surplus.
B)profit.
C)value added.
D)gross product.

Question

Quizplus · Accepted Answer

The value of a producer's output minus the value of the inputs it purchases from other producers is referred to as "value added." This is because it represents the additional value that the producer has created through its own production process. Option A, "surplus," refers to an excess of supply over demand, and option D, "gross product," refers to the total value of a producer's output, without subtracting the value of inputs. Option B, "profit," is the revenue that remains after deducting costs, which is related to but not identical to value added.

The Value of a Producer's Output Minus the Value of the Inputs