The value of total output in the economy using the value added approach is

  • A N57.00
  • B 37.00
  • C 20.00
  • D 15.00
jamb 1991economics

The correct answer is C. 20.00

The value of total output in the economy using the value-added approach is calculated by summing up the value added at each stage of production.

The value added at each stage is the difference between the sale value of output and the value of input at that stage.

From the image, the value added at each stage is as follows:

  • Maize farmer: N10.00 (since there's no input cost)
  • Flour miller: N12.00 - N10.00 = N2.00
  • Baker: N15.00 - N12.00 = N3.00
  • Shop keeper: N20.00 - N15.00 = N5.00

Adding these up, we get N10.00 + N2.00 + N3.00 + N5.00 = N20.00.

So, the answer is C. 20.00.

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