To Avoid Double Counting in the Computation of GDP, Only

question 27

Multiple Choice

To avoid double counting in the computation of GDP, only the value of ______ goods are included.

• A) final
• B) used
• C) intermediate
• D) investment

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Definitions:

Output Decreasing

A situation where the quantity of goods or services produced by an economy or firm is reducing over time.

Marginal Revenue

The additional income earned by selling one more unit of a good or service, crucial for determining optimal output levels.

Total Costs

The sum of all expenses associated with the production and delivery of goods or services, encompassing both fixed and variable costs.

Average Total Cost

This refers to the total cost of production divided by the number of units produced, inclusive of fixed and variable costs.