In Calculating GDP, Economists Use the Value of Final Goods

question 79

Multiple Choice

In calculating GDP, economists use the value of final goods and services because

• A)by using final goods and services, they avoid double counting.
• B)final goods can be exported to other countries.
• C)intermediate goods are imported from other countries.
• D)GDP is underestimated if intermediate goods are used instead.
• E)final goods and services do not depreciate.

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Definitions:

Air Pollution

The presence of substances in the air at levels that are harmful to human health or the environment, originating from various sources like industrial activities, vehicle emissions, and natural events.

Toxic Waste

Hazardous waste causing harm to the environment or health, often produced by industrial processes.

Spherical Layers

The concentric layers that make up a planet like Earth, including the crust, mantle, outer core, and inner core, each varying in composition and physical properties.

Solar Energy

Energy harnessed from the sun, transformed into either heat or electrical power.