If,during 2011,the Republic of Sildavia recorded a value added of $78 billion,wages of $40 billion,profits of $8 billion,and total sales of all goods and services of $90 billion,the value of intermediate goods purchased during 2011 in Sildavia was:
A) $42 billion.
B) $30 billion.
C) $12 billion.
D) $4 billion.

Question

Quizplus · Accepted Answer

The value added is the total sales minus the value of intermediate goods. Given that the value added is $78 billion and total sales are $90 billion, the value of intermediate goods is $90 billion - $78 billion = $12 billion.

If,during 2011,the Republic of Sildavia Recorded a Value Added of $78