Which of the following formulas is correct for Gross Value Added?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Gross Value Added = Gross Domestic Product + Subsidies - Taxes
- Gross value added (GVA) is a crucial metric for assessing the state of a nation's economy.
- Similar to GDP (Gross Domestic Product), GVA also takes into consideration the impact of taxes and subsidies on the ultimate cost of goods and services.
- GVA can be written as follows: GDP + Subsidies - Taxes.