Value Added in National Income Accounts Refers to The

question 108

Multiple Choice

Value added in national income accounts refers to the:

• A) value added by labor to the production process.
• B) difference between the price and the value of inputs purchased.
• C) difference in profits at various stages of production.
• D) value of all inputs used by the final producer.

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Definitions:

Receivables Period

The amount of time it typically takes for a business to collect payments owed by its customers after selling its goods or services on credit.

Types of Inventory

Refers to the classifications of inventory that businesses maintain, including raw materials, work-in-progress, and finished goods.

Liquidity

The ease with which assets can be converted into cash without significantly affecting their price.