​GDP Excludes the Purchases of Sliced Bread by a Sandwich

question 177

True/False

​GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case.

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Definitions:

Engine Oil

A lubricant used in internal combustion engines to reduce wear, protect against corrosion, and keep the engine clean.

Manufacturer

A company or person that makes goods for sale, especially on a large scale involving complex processes.

Factory Overhead

The indirect costs associated with manufacturing, including but not limited to utilities, maintenance, and management salaries.

Product Cost

The total expense incurred to produce a product, including the costs of raw materials, labor, and overhead.