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.

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Definitions:

Mental Operations

In Piaget’s theory, the mental process of combining, separating, or transforming information in a logical manner.

Logical Manner

A method of reasoning or problem-solving in a clear, structured, and coherent way.

Schemas

Cognitive frameworks or concepts that help individuals organize and interpret information, guiding how they perceive and respond to their environment and experiences.

Object Permanence

The understanding that objects have substance, maintain their identity when their location is changed, and ordinarily continue to exist when out of sight.