How Are Intermediate Goods Accounted for When Calculating GDP

question 124

Multiple Choice

How are intermediate goods accounted for when calculating GDP?  

• A) The value of all intermediate goods is included in GDP. 
• B) The value of intermediate goods is included in GDP only if they were produced in the previous year. 
• C) The value of intermediate goods is included in GDP only if they are purchased by firms rather than by households. 
• D) The value of intermediate goods is included in GDP only if they are part of inventory.

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Definitions:

Survival Rate

The percentage of individuals or entities that continue to exist or function after a specified period of time or after a particular event.

Family Businesses

Companies that are owned, managed, and operated by multiple generations of a family, often with the intention of passing the leadership to the next generation.

Systematic Way

An organized and methodical approach to completing tasks or solving problems.

Entrepreneurial Mindset

A set of attitudes, skills, and behaviors that individuals possess, which drives them to innovate, create, and seek opportunities for growth or problem-solving in business contexts.