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:

Marginal Costs

The financial implication of manufacturing an extra unit of a product or service.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices within a given period.

Economic Profit

The profit a firm makes after subtracting both its explicit (direct) and implicit (indirect or opportunity) costs from its total revenues.

Short-Run Data

Information or statistics collected over a brief period, often used to make immediate decisions or analyze short-term economic trends.