Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

The net contribution made by a firm is called its :

Options:

Value of output

Value added

Intermediate consumption

Net indirect taxes

Correct Answer:

Value added

Explanation:

The correct answer is option (2) : Value added

Value added: Net contribution made by a firm in the process of production.

It is defined as, Value of production – Value of intermediate goods used.