In National-Income Accounting,the Value of Intermediate Products

question 82

Multiple Choice

In national-income accounting,the value of intermediate products

• A)should always be counted as part of GDP in the expenditure approach.
• B)should be subtracted from the value of final goods in determining a firm's total value added.
• C)should be added to the value of other inputs in determining a firm's contribution to GDP.
• D)must equal the value added by the firm.
• E)is counted as factor income in the calculation of GDP from the income side.

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Definitions:

Human Reason

The capacity of the human mind to analyze situations, make judgments, and solve problems.

Socialism

An economic institution characterized by state ownership and management of the basic industries.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and distribution of goods determined primarily by competition in a free market.

Private Property

Property owned by individuals or companies, not by the state or public entities, and protected by law; includes both tangible and intangible assets.