How Are Intermediate Goods Treated in GDP Computations

question 64

Multiple Choice

How are intermediate goods treated in GDP computations?

• A) They are included so we can get a measure of sales.
• B) They are excluded because their value is already counted in the value of final goods.
• C) They are excluded because there are too many to accurately measure.
• D) They are included because they are final goods for the firm producing them.

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Definitions:

Standard Normal Distribution

A special case of the normal distribution with a mean of zero and a standard deviation of one.

Probability

A measure of the likelihood of a specific event or outcome, expressed as a number between 0 and 1.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a dataset deviate from the mean of the dataset.

Random Variable

A variable that can take on numerical results from a random event.