Value Added Is Calculated By

question 82

Multiple Choice

Value added is calculated by:

• A)subtracting the cost of materials used in production from the value of sales.
• B)adding the cost of materials used in production to the value of sales.
• C)subtracting the value of sales from the cost of materials used in production.
• D)adding the value of output to the value of inputs.

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Definitions:

Internally Held

Pertains to public debt that is owed to lenders within a country rather than external lenders.

Public Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and international organizations.

Productive Capacity

The maximum output that an economy can achieve when using its resources fully and efficiently.

Standard of Living

The degree of wealth and material comfort available to a person or community.