Explain what is meant by the concept of "value added" and how it can be used to calculate GDP.

Name: Explain what is meant by the concept of "value added" and how it can be used to calculate GDP.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

The Answer is Value added simply refers to the difference between the value of goods as they leave a stage of production and the cost of the goods as they entered that stage. If you add up the "value added" at each stage of the production process, the final value is equal to GDP.

Explain What Is Meant by the Concept of "Value Added