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You Are Dropping Your Friend Back Home After a Night

question 6

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You are dropping your friend back home after a night at the movies.From the car,she turns on the indoor lights in her home using an app on her phone.How is your friend able to do this?


Definitions:

Intermediate Products

Goods used as inputs in the production of other goods, including raw materials, components, and subassemblies.

Market Value

is the amount for which something can be sold in a given market at a particular time.

Final Products

Goods and services that have completed the production process and are intended for final consumption or investment.

Value Added Approach

This is a method for calculating GDP that sums the values added at each stage of production, avoiding the double-counting of intermediate goods.

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