If We Sum Up the Value Added at Every Stage

question 56

Multiple Choice

If we sum up the value added at every stage of production of a good, we will get:

• A) the total cost of the labor used to produce the good.
• B) the prices of the factors of production used to produce the good.
• C) the final value of the good.
• D) the capital-labor ratio.

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Definitions:

Report Form

A form of balance sheet with the “Liabilities” and “Stockholders’ equity” sections presented below the “Assets” section.

Balance Sheet

A financial statement that displays a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Multiple-Step Income Statement

An income statement that separates operating revenues and expenses from non-operating items to calculate net income in several steps.

Income From Operations

Financial gain accruing from the essential operations of an enterprise, without taking into account interest and tax deductions.