Explain Why Intermediate Goods and Used Goods Do Not Count

question 62

Essay

Explain why intermediate goods and used goods do not count in GDP.

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Definitions:

Need for Cognition

An individual's tendency to engage in and enjoy activities that require thinking, reasoning, and problem-solving.

Problem Solving

The cognitive process(es) used in transforming starting information into a goal state using specified means of solution.

Verbal Comprehension

The ability to understand words, sentences, and texts; often assessed in psychological testing as an aspect of cognitive ability.

Expressional Fluency

A measure of an individual's ability to swiftly find words and articulate ideas effectively.