In national income accounting, the value-added method avoids double counting by adding the value of:
Correct answer: B. Output at each stage minus intermediate inputs
- A. Final goods sold to households and firms
- B. Output at each stage minus intermediate inputs
- C. Intermediate goods purchased by producers
- D. All goods traded in domestic markets
Explanation
Value added equals the value of an industry's output minus the cost of intermediate inputs. Adding total sales of intermediate and final goods would count the same production more than once.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
Practise Economy of Pakistan
390 free Economy of Pakistan MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Economy of Pakistan questions
In the mixed economy________________?
What is called a country's total financial obligations to the rest of the world ?
Mention the name for that urban and rural region which is closely associated economically with an adjoining town or city. Term is also used to describe the area that is serviced by a port or coastal settlement ?
When the State Bank of Pakistan sells government securities in the open market, the immediate effect is generally to:
A high public-debt-to-GDP ratio most directly indicates that:
If a country's export prices rise relative to its import prices, its terms of trade generally: