GCEEconomicsNational Income2019

The value-added method of measuring national income involves summing up the

Atotal expenditure on all goods and services produced in an economy
Btotal incomes earned by all factors of production in an economy
Cnet contribution of each firm to the total value of output at each stage of productionCORRECT
Dmarket prices of all final goods and services sold to consumers
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Why the answer is C, and why the others tempt you.
The value-added method, also called the output or production approach, calculates national income by summing the net value added at each stage of production by every firm. This avoids double counting because only the additional value created at each stage is counted, not the total value of output including intermediate inputs.
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