What is meant by a firm’s “value added”? A student remarks: “It doesn’t make sense that intermediate goods are not counted in GDP. A computer chip is an intermediate good, and without it, a laptop...

What is meant by a firm’s “value added”?

A student remarks: “It doesn’t make sense that intermediate goods are not counted in GDP. A computer chip is an

intermediate good, and without it, a laptop won’t work.

So, why don’t we count the computer chip in GDP?”

Provide an answer to the student’s question.