Question

Which statement correctly distinguishes Gross Value Added from Net Value Added?

Options

• Gross Value Added equals imports; Net Value Added equals exports.

• Gross Value Added is value of intermediate goods; Net Value Added is value of output.

• Gross Value Added includes depreciation; Net Value Added is Gross Value Added minus depreciation.

• Gross Value Added excludes depreciation; Net Value Added includes depreciation.

Answer 1

Gross Value Added includes depreciation. Net Value Added is obtained by subtracting depreciation from Gross Value Added.