National Income Accountants Can Avoid Multiple Counting By

question 145

Multiple Choice

National income accountants can avoid multiple counting by:

• A)including transfers in their calculations.
• B)counting both intermediate and final goods.
• C)only counting final goods.
• D)only counting intermediate goods.

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Definitions:

Labor

The human effort, whether physical or mental, used in the production of goods and services.

Materials

Materials refer to the substances or components used in the manufacturing or production of goods and items.

Rent

A periodic payment made to an owner for the use of their property, typically in the context of real estate.

Fixed Costs

Costs that do not vary with output.