How Are Intermediate Goods Treated in GDP Computations

question 64

Multiple Choice

How are intermediate goods treated in GDP computations?

• A)They are included so we can get a measure of sales.
• B)They are excluded because their value is already counted in the value of final goods.
• C)They are excluded because they are too difficult to measure.
• D)They are included because they are final goods for the firm producing them.

---

Definitions:

Drawer's Signature

is the signature of the person who has written and is responsible for the financial instrument, such as a check, authorizing its use and the payment it represents.

Customer's Negligence

A situation where a customer's failure to exercise reasonable care results in harm or damage.

Re-Credit

The process of restoring a previously deducted amount back into an account or credit rating.

Dishonored

describes a financial instrument, such as a check or a bill, that has been refused payment by the bank or person it was presented to.