Based on Scenario 6.1 above,value added in the United States is
A)$500.
B)$600.
C)$400.
D)$300.

Name: Based on Scenario 6.1 above,value added in the United States is A)$500. B)$600. C)$400. D)$300.
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Question

Quizplus · Accepted Answer

Value added is calculated as the difference between the total value of output and the value of intermediate goods used in the production process. In this scenario, the total output is $1000 and the value of intermediate goods used is $600. Therefore, the value added is $400.