To Calculate GDP Using the Value-Added Method,one Would Add Up

question 118

Multiple Choice

To calculate GDP using the value-added method,one would add up

• A)the market value of final goods and services produced during a particular period.
• B)only the value added by the underground economy.
• C)the value added by each firm involved in the production of final goods and services.
• D)the market value of intermediate goods and services produced during a particular period.

---

Definitions:

Statement of Income

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or net loss.

Equity

The value of ownership interest in the firm, calculated as total assets minus total liabilities.

Account Payable

Liabilities of a company that are owed to creditors or suppliers for purchases made on credit.

Suppliers

They are businesses or individuals that provide the goods or services that companies need to operate and produce their own goods.