The Following Are Examples of fiNal Goods in National Income

question 40

Multiple Choice

The following are examples of final goods in national income accounting, except

• A) lumber and steel beams purchased by a construction company.
• B) a tractor purchased by a construction company.
• C) a laptop computer purchased by an executive for personal use.
• D) a desktop computer purchased by an executive for business use.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Incremental Net Cash Flows

The difference in a company's cash flows when considering a proposed change, such as an investment or project.

Overhead Costs

Expenses not directly tied to product production, such as rent, utilities, and administrative salaries, essential for running a business.

Distribution Efficiencies

The optimization of processes and resources involved in distributing products or services from the producer to the consumer.