Value Added Is

question 17

Multiple Choice

Value added is

• A)the sum of all income earned by resource suppliers
• B)actual investment minus planned investment
• C)any payment of income that adds to the domestic spending stream
• D)the value of a product minus the cost of materials
• E)the increase in the value of a financial asset such as a stock or bond

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Definitions:

Complements

Goods and services that are used together, where the consumption of one enhances the use or value of the other.

Demand

Demand refers to consumers' desire and willingness to purchase a good or service at a specific price level.

Labor

The deployment of human intellectual and bodily efforts towards the creation of products and services.

Price Capital

The cost of acquiring assets used for production, such as machinery or buildings, often referred to as investment in capital goods.