Goodyear Produces Tires for Automobiles,50,000 in All

question 116

Multiple Choice

Goodyear produces tires for automobiles,50,000 in all.Suppose 40,000 go on new cars and are sold as part of each car,while the other 10,000 are produced as replacement tires and are sold individually.How many tires would be counted in current GDP?

• A) 50,000,because everything produced is counted
• B) 40,000 because only the ones on new cars are counted
• C) 10,000 because 40,000 will be counted in the value of the new cars
• D) 0 because they are all intermediate goods
• E) 10,000 because they are the only "final" goods and services in the total

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Definitions:

Duty

An obligation or responsibility to act in a certain way, often imposed by law, social norms, or professional standards.

Double Indemnity

A clause in a life insurance or accident policy that entitles the beneficiary to receive twice the face value of the policy in the event of accidental death.

Construction Accident

An unexpected event occurring on a construction site that leads to injury or damage.

Bodily Injuries

Physical harm or damage to a person's body caused by an accident or violence.