The term "value added" refers to the dollar value of
A) an industry's sales plus profits.
B) the intermediate goods and services purchased by an industry.
C) an industry's sales less the dollar value of the intermediate goods purchased by the industry.
D) the intermediate goods purchased by an industry plus the profits of the industry.

Question

Quizplus · Accepted Answer

Value added is calculated as an industry's sales revenue minus the cost of intermediate goods used in production. This represents the additional value created by the industry through its own processes and inputs. It is not simply the industry's profits, as those are one component of the value added calculation.

The Term "Value Added" Refers to the Dollar Value of