Read the two statements and choose the correct option.
I. The value added method is also called the product method.
II. Under the value added method, the value of all intermediate goods is added to the value of final goods.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Product method and value added method are names for the same thing, so I is true.
Adding intermediate goods would be double counting, so II is false.

Ten questions from Measuring National Income, at your own pace.

Ten questions from Measuring National Income, at your own pace.

Read the two statements and choose the correct option.I. The value added method is also called the product method.II. Under the value added method, the value of all intermediate goods is added to the value of final goods.