The value added at all stages of production sums to the market value of the final good,and the value added for all final goods sums to GDP based on the income approach.

Question

Quizplus · Accepted Answer

This statement is true as GDP can be measured both by the value added approach and the income approach, where the value added at each stage of production is added to calculate the final market value of the good and services, and eventually the income generated by these value added activities is summed up to calculate GDP.

The Value Added at All Stages of Production Sums to the Market