The sum of all value added equals the sum of all incomes.

Question

Quizplus · Accepted Answer

This statement is based on the concept of national income accounting, which states that in a closed economy (without international trade), the total income generated by all economic agents must equal the total value of all goods and services produced (value added) in that economy. Thus, the sum of all value added equals the sum of all incomes (wages, salaries, profits, rent, etc.) in the economy.

The Sum of All Value Added Equals the Sum of All