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Shift 01/06/2023 8:30 AM - 11:30 AM
Correct Answer
1.Calculate the value of output in the Primary, Secondary, and Tertiary sectors (C): This step involves determining the total value of goods and services produced in each sector. It is essential to break down the economic activity into these sectors to accurately calculate the value added at each stage of production.
2.Calculate the Gross value of output (A): After finding the value of output in each sector, you sum them up to get the Gross value of output. This represents the total value of all goods and services produced in the economy.
3.Calculate Gross value added (B): Gross value added is calculated by subtracting the value of intermediate consumption (costs associated with inputs) from the Gross value of output. It represents the value added at each stage of production in the economy.
4.Calculate National Income (D): Finally, National Income is calculated by summing up the Gross value added in all sectors of the economy. This represents the total income earned by factors of production (such as labor and capital) in the economy.
So, the sequence (C), (A), (B), (D) is the correct order for calculating National Income using the value-added method.
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