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VALUE ADDED TO THE U.S. ECONOMY

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VALUE ADDED TO THE U.S. ECONOMY
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Sunanda K. Chavan
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VALUE ADDED TO THE U.S. ECONOMY - October 11th, 2010

VALUE ADDED TO THE U.S. ECONOMY

The contribution of any industry to the economy is measured by the value the industry adds to the economy, a conventional measure that is called value added.


The value added by an industry is the industry's sales minus its cost for products and services purchased from and produced by other industries.


The game software publishing industry purchases packaging materials, magnetic storage media to store software, and other products and services.


The costs of these products and services, which are produced by other industries and purchased by the game software publishing industry, must be subtracted from the publishing industry's sales to determine its value added to
the economy.


The computer and video game software publishing industry's value added to the U.S. economy was $4.8 billion in 2000.


This figure reflects game software publishing industry sales and software industry purchases of products and services from other industries.


The U.S. Department ofCommerce, Bureau of Economic Analysis, reports these purchases and other inter-industry trans-actions in the benchmark accounts of the U.S. economy.
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