How Are 'Intermediate Goods' Treated in the Calculation of GDP

question 104

Multiple Choice

How are 'intermediate goods' treated in the calculation of GDP?

• A)Their value is not counted separately, but included as part of the value of the final good of which they are an input.
• B)Their value is counted separately, and their value is also included as part of the value of the final good of which they are an input.
• C)They are included in the year that they are produced.
• D)They are included only if they are imported.

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Definitions:

Intellectual Capital

The intangible value of an organization's knowledge, processes, and intellectual property, contributing to its competitive advantage.

Personal Asset

An item of value owned by an individual, including tangible and intangible items like property, stocks, or intellectual property.

Intellectual Capital Equation

A formula used to assess the intangible assets of an organization, such as knowledge, skills, and intellectual property, which contribute to its value.

Competency

One’s personal talents or job-related capabilities.