In an economy, when comparing (1) total value added, (2) total expenditure on final goods, and (3) total factor income, what relationship holds true among these three measures?

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3 is greater than 2, which is greater than 13, 2, and 1 are all equal3 is less than 2, which is less than 1Any of the three values can be larger or smaller than the othersNone of the above

Explanation

In national accounting, total value added, total spending on final goods, and total factor income represent the same economic output measured from different perspectives. Therefore, these three quantities are equal in value.