How Are Intermediate Goods Treated in the Calculation of GDP

question 8

Multiple Choice

How are intermediate goods treated in the calculation of GDP?

• A)Their value is not counted separately,but included as part of the value of the final good for which they are an input.
• B)Their value is counted separately,and their value is also included as part of the value of the final good for which they are an input.
• C)Their value is counted separately,but is not included as part of the value of the final good for which they are an input.
• D)They are included only if they are imported.

Master the calculation and application of discounts on purchases within the discount period.

Grasp the concept of the perpetual inventory method and its application in accounting for merchandise.

Understand the function and maintenance of the accounts payable subsidiary ledger.

Comprehend the relationship and reconciliation between the accounts payable controlling account and the accounts payable subsidiary ledger.

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Definitions:

Competitive Environment

The dynamic external system in which businesses compete for resources, customers, and market space.

Pure Competition

The market structure that exists when there are many small businesses selling one standardized product.