How Is Gasoline Treated in GDP Terms

question 154

Multiple Choice

How is gasoline treated in GDP terms?

• A) It is counted as an intermediate good.
• B) It is counted as a final good if a company uses it to provide transportation services.
• C) It is counted as a final good if a consumer uses it to mow her yard.
• D) It is counted as an intermediate good if a consumer uses it to mow a friend's yard without pay.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input while holding other inputs constant.

First Worker

The initial employee hired in a startup or new business venture, often taking on multiple roles and responsibilities.

Marginal Product

The extra production achievable by incorporating an additional unit of a particular input, assuming all other variables remain constant.

Average Product

The output per unit of input, calculated by dividing total output by total input.