Which of the Following Is Classified as a Final Good

question 251

Multiple Choice

Which of the following is classified as a final good or service?
I.tires bought by GM to put on new Tahoes
Ii.mustard bought by Subway to put on its sub sandwiches
Iii.your purchase of online access to the Wall Street Journal

• A)i and ii
• B)i,ii and iii
• C)iii only
• D)ii and iii
• E)ii only

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Definitions:

Output

The overall production of goods or services by an organization, industry, or economic body.

Economic Profit

The gap between all earnings and total expenditures, factoring in both overt and hidden costs.

Accounting Profit

The total revenue of a business minus the explicit costs associated with that business, as calculated for financial accounting and reporting purposes.

Explicit Costs

Direct, out-of-pocket payments made by businesses for resources and services.