Intermediate Goods and Services Are

question 41

Multiple Choice

Intermediate goods and services are:

• A)used only as inputs to produce something else and are not counted in GDP.
• B)goods that consumers buy in parts-like a new tire for their car-and are included in GDP.
• C)used only as inputs to produce something else and are counted in GDP.
• D)goods that consumers buy in parts-like a new tire for their car-and are not included in GDP.

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Definitions:

Cost of Goods Sold

Direct expenditures related to the production of a company's goods, comprising both materials and labor.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or debt repayment, rather than being paid out to shareholders.

Common Shares

Equity investments that represent ownership interests in a corporation, entitling holders to dividends and voting rights.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.