Total Value Added in an Economy Is Equal to the Value

question 47

Multiple Choice

Total value added in an economy is equal to the value of

• A)all profits of all firms in the economy.
• B)the sum of the value of primary, intermediate and final goods.
• C)all final goods produced.
• D)all final and intermediate goods produced.
• E)all inputs and outputs in the economy.

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Definitions:

Incurred

Expenses or losses that have been realized or taken on, typically reflecting costs associated with the operation of a business.

Prepaid Insurance

The portion of insurance premiums that has been paid in advance and is recorded as an asset until the coverage period lapses.

Insurance Expense

It refers to the cost associated with purchasing insurance policies for protecting against risks and potential financial losses.

Adjusted Balance

An account balance reflecting all transactions except for those which have not yet been posted due to timing differences.