Question

ba vahis added method involvos toking the price of intermadiae outputs (o outpults that will In um, bB used in he production of anohorood) a The alue that is added at each stop (he sale value minus the value that went into producing 8) is summed up ervices because: and suttracting the oost of producing oach one in tis way, orly th tandard method of only counting the value of final goods and uta value minus the value that went into producing 8) is summed up. This method gives us the same resut as the s the system of accounting requires thait it be the same the only difference is that the standard method of counting adds up production in the both methods are used by the same agancy so the totals have to be equal economy as s produced,and the value-added method totals the value at the end of he production chan the only differenoe is that the value-adoed method adds up production in the eccomy an i is produced, and the standand mathod of counting ony usss the compilened value at the and of the production chain

Answer 1

The correct answer is option D) because Value addition method involves the calculation of GDP by adding the value at each step while the expenditure method calculates by adding the value of final goods and service. Also according to the accounting system the value of GDP must be the same whether we use the value method approach , expenditure or the income approach.