The Value of Intermediate Goods Is Not Included in the Calculation

question 154

Multiple Choice

The value of intermediate goods is not included in the calculation of GDP to avoid the problem of

• A)depreciation.
• B)inflation.
• C)double counting.
• D)transfer payments.

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Definitions:

Resource Prices

The costs associated with acquiring the inputs needed for production, including materials, labor, and capital.

Widespread Famine

A severe shortage of food across a large geographic area, leading to widespread hunger and malnutrition.

Tragedy Of The Commons

The tendency for commonly owned natural resources to be overused, neglected, or degraded because their common ownership gives nobody an incentive to maintain or improve them.

Garrett Hardin

An ecologist known for his work on environmental issues and for introducing the concept of the "Tragedy of the Commons."