Value added refers to:

CA Foundation · Business Economics · MTP · June 2024
Value added refers to:
(A) A. any increase in GDP that has been adjusted for adverse environmental effects.
(B) B. the excess of gross investment over net investment.
(C) C. the difference between the value of a firm's output and the value of the inputs it has purchased from others.
(D) D. the portion of any increase in GDP that is caused by inflation as opposed to an increase in real output.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. the difference between the value of a firm's output and the value of the inputs it has purchased from others.

Topics: Determination of National Income

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