If during 2011 the republic of sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and total sales of $90 billion, the value of intermediate goods purchased during 2011 in sildavia was: a. $42 billion. b. $30 billion c. $12 billion d. $4 billion

option (C) $12 billion

Explanation:

Data provided in the question:

Recorded value added = $78 billion

Wages = $40 billion

Profits of $8 billion

Total sales = $90 billion

Now,

The Value of intermediate goods is given as:

= Total value of sales - Recorded Value added

on substituting the values, we get

= $90 billion - $78 billion

= $12 billion

Hence,

The correct answer is option (C) $12 billion

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