GDP Includes the Value of Final Goods, and Not Intermediate

question 42

Multiple Choice

GDP includes the value of final goods, and not intermediate goods, because:

• A)the value of intermediate goods is already included in the value of final goods
• B)the value of intermediate goods is too difficult to measure
• C)the value of intermediate goods is measured by GNP
• D)the value of intermediate goods depends on the number of separate production processes

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the straight-line depreciation rate.

Resale Value

The estimated value at which an asset or property can be sold in the future, taking into account depreciation or appreciation.

Equipment

Equipment refers to the necessary items for a particular purpose, especially tools or devices needed for a specific task or activity.

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of an asset than the straight-line method, basing calculations on the sum of the years of the asset’s life.