In National- Income Accounting, the Value of Intermediate Products

question 84

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

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Definitions:

Trade Surplus

Occurs when the value of a country's exports exceeds the value of its imports.

U.S. Dollar

The official money of the United States, commonly utilized as a standard and reserve financial instrument globally.

Imports

refer to goods or services purchased from other countries, which are brought into a country to meet domestic demand or for further processing.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a nation's gross domestic product.