The Value-Added Method for Computing GDP

question 52

Multiple Choice

The value-added method for computing GDP:

• A) adds all income earned in the economy.
• B) measures the value of all goods and services purchased in the economy.
• C) measures the additional value to a product or raw material in each stage of production.
• D) excludes exports.

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Definitions:

Mutual Mistake

A situation where all parties to a contract have a shared misunderstanding about a fundamental fact of the agreement.

Material Effect

A significant impact or change to a business or financial situation, often requiring disclosure to stakeholders.

Agreement

An understanding or arrangement reached between two or more parties, either formally or informally.

Enforce

Refers to the act of compelling observance or compliance with a law, rule, or obligation.