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      Question

      Read the following statements (I) тАШValue

      addedтАЩ refers to the difference between value of output and purchase of intermediate goods. (II) тАШValue addedтАЩ represents the contribution of labour and capital to the production process.
      A Statements I and II are incorrect Correct Answer Incorrect Answer
      B Statements I and II are correct Correct Answer Incorrect Answer
      C Statement I is correct and II is incorrect Correct Answer Incorrect Answer
      D Statement II is correct and I is incorrect Correct Answer Incorrect Answer

      Solution

      Value added is calculated as Output тАУ Intermediate goods, and it indeed reflects the contribution of labour and capital.

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