The Value-Added Approach of Calculating GDP

question 28

Multiple Choice

The value-added approach of calculating GDP:

• A) is an alternative, and equally valid, way of avoiding the problem of double-counting.
• B) breaks down the total amount paid for a product to see how much of it was created at each step of the production process.
• C) is especially useful when thinking about the services involved in the resale of existing goods.
• D) All of these are correct.

---

Definitions:

Invoice

A document issued by a seller to a buyer, listing goods or services provided, their prices, and payment terms.

Revocation

The act of officially withdrawing, cancelling, or annulling something, such as a license, will, or law.

Offeree

The person or entity to whom an offer is made in contract law.

Effective

Producing a decided, decisive, or desired effect, often used to describe rules, policies, or products that achieve their goals.