Value Added Is Defined As

question 84

Multiple Choice

Value added is defined as:

• A) the value of productivity gains that arise when a firm increases its capital-labor ratio.
• B) the difference between the total cost of production of a product and the total revenues earned from the sale of the product.
• C) the amount by which the value of a firm's final output exceeds the total value of the intermediate goods and services used to produce the good.
• D) the cost savings that a firm enjoys when it reduces the cost of its resources by employing a more efficient production method.

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Definitions:

Written Promises

Documents or agreements in which one party commits to perform a specified action for another party.

Dependent Variables

In experimental and statistical research, the variable that is tested and measured to see if it is influenced by changes in the independent variable.

Independent Variables

Variables in an experiment that are manipulated to observe their effects on dependent variables.

Experimental Hypothesis

An assumption or prediction about the relationship between two variables or the outcome of an experiment designed to be tested through research.