The Value Added on an Item Produced Means

question 16

Multiple Choice

The value added on an item produced means:

• A) a firm's profits on the item sold.
• B) the value of the labor inputs in the production of an item.
• C) the value of a firm's output less the value of its costs.
• D) the value of a firm's output less the value of the intermediate goods that the firm purchases.

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Definitions:

Forgone Interest

The potential interest income lost when capital is invested in one project instead of being deposited in a savings account or invested in an alternative project.

Total Revenues

The complete amount of income generated by a business from its sales or services before any expenses are subtracted.

Entrepreneurial Talent

The unique skills, creativity, and innovative capabilities that entrepreneurs bring to create and manage new ventures, driving economic growth.

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production process.