The Value of Intermediate Goods Is Not Counted in GDP

question 41

Multiple Choice

The value of intermediate goods is not counted in GDP

• A)to keep from including goods that reduce society's welfare.
• B)because of the tremendous difficulty in keeping track of all the intermediate goods produced in an economy as large as Canada.
• C)because they are only sold in factor markets.
• D)to avoid counting their value twice and overstating the value of GDP.
• E)because they are not consumed in the current year.

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Definitions:

Lateral Rectus

A muscle in the orbit that abducts the eye, moving it outward, away from the midline of the body.

Medial Rectus

A muscle in the eye that enables inward movement of the eyeball.

Forced Expiration

The act of expelling air from the lungs with effort after a maximal inhalation, often measured during pulmonary function tests.

Internal Intercostals

Internal intercostals are muscles located between the ribs that help with the process of forced expiration by drawing the ribs downward and inward.