Value Added Can Be Determined by

question 71

Multiple Choice

Value added can be determined by

• A) summing the profits of all enterprises in the economy.
• B) subtracting the purchase of intermediate products from the value of the sales of final products.
• C) calculating the year-to-year changes in real GDP.
• D) deflating nominal GDP.

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Definitions:

Required Return

The minimum expected return on an investment necessary for it to be considered a viable option, taking into account its risk level.

Dividend

A distribution of a portion of a company's earnings decided by the board of directors to its shareholders.

Risk Aversion

A preference for avoiding risk, where individuals or entities prioritize certainty and are reluctant to engage in investments with uncertainty.

Expected Return

The anticipated value or profit from an investment over a given period of time.