Question

Which formula defines Gross Value Added (GVA)?

Options

• \(\text{GVA} = \text{Taxes} - \text{Subsidies}\)

• \(\text{GVA} = \text{Factor Cost} - \text{Net Product Taxes}\)

• \(\text{GVA} = \text{Total Output} - \text{Intermediate Consumption}\)

• \(\text{GVA} = \text{Total Output} + \text{Intermediate Consumption}\)

Answer 1

GVA is calculated by subtracting Intermediate Consumption from Total Output. It represents the value added by producers during production.