Value Added Is Defined as

question 87

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 value of all resources used to produce a product and the final selling price of that product.
• C)the amount by which the value of a firm's output exceeds the value of the goods and services the firm purchases from other firms.
• D)the cost savings that a firm enjoys when it reduces the cost of its resources by employing a more efficient production method.

---

Definitions:

Temporary Protection

A form of humanitarian status that allows individuals fleeing emergencies in their home countries to remain in a host country for a limited period.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Absolute Advantage

The ability of a country or individual to produce a good more efficiently than another entity with the same resources.

Trade Deficit

The circumstance where a country's imports outpace its exports, causing a negative trade balance.