The Value Added Method of Calculating GDP Means

question 307

Multiple Choice

The value added method of calculating GDP means

• A) adding up the market values of all intermediate goods.
• B) calculating the percentage changes in the GDP between two years.
• C) adding up the incomes of all businesses in a given year.
• D) adding up the difference between the sale price and the value of intermediate goods of each product at every stage of production.

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Definitions:

Income Distribution

The way in which total income is divided among the population or different groups within society, affecting economic inequality.

Developing Economies

Countries with a lower level of industrialization, less advanced technological infrastructure, and lower living standards relative to developed countries.

Income Distribution

The way in which the total income of a society is divided among its members.

Income Earners

Individuals or entities that receive income through wages, salaries, investments, or other forms of financial gain.