The sum of all value added equals the sum of all final products and services produced.

Question

Quizplus · Accepted Answer

This statement is true as value added represents the increase in economic value of a good or service as a result of combining inputs and applying production processes. The sum of all value added in the economy should therefore equal the sum of all final products and services produced as they are both measures of the total economic activity.

The Sum of All Value Added Equals the Sum of All