To Calculate Value Added, We Need to Subtract

question 36

Multiple Choice

To calculate value added, we need to subtract

• A)the cost of domestic- and foreign-produced intermediate inputs.
• B)the cost of all goods and services exported.
• C)only the cost of domestically produced intermediate inputs.
• D)only the cost of foreign-produced intermediate inputs.
• E)total imports.

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Definitions:

Mattel

A multinational toy manufacturing and entertainment company known for brands such as Barbie, Hot Wheels, and Fisher-Price.

Barbie Doll

A popular brand of fashion doll introduced by Mattel, Inc. in 1959.

Efficient Markets

These are markets where prices fully reflect all available information, making it impossible to consistently achieve higher returns than the market average.

Opportunity Cost

Overlooking possible gains from other alternatives by dedicating to one path.