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:

Contractual Provisions

Specific clauses within a contract that outline the terms, conditions, obligations, and rights of the parties involved.

Preference

A prior or special right or privilege, especially in the context of decision-making or the allocation of resources.

Liquidation

The process of converting assets into cash or other forms of payment to settle debts with creditors during the closure of a business.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests.