Home › Bihar Board Class 12 (Arts) › Economics › National Income Accounting › The value added of a firm equals its
The value added of a firm equals its
ASales minus intermediate goods
BSales plus intermediate goods
CProfit minus wages and rent
DOutput minus total exports
Answer & Solution
Correct answer: A. Sales minus intermediate goods
Value added is the firm's own contribution, its sales less the intermediate inputs bought from others.
Related questions
Countries rich in natural resources areIf GDP rises but real incomes of 90% of people fall, GDP as a welfare index isAn Indian company's profit earned in Dubai affects which aggregate?A firm buys Rs 40 of raw material and sells output of Rs 90. Its value added isWhich part of national income does household consumption and saving come from?Corporate tax is deducted from national income because itA fine paid by a household is an example of aPersonal disposable income is personal income minus