GDP Counts

question 70

Multiple Choice

GDP counts:

• A) only final goods and services, because otherwise certain things would be double-counted and the GDP would be overestimated.
• B) only intermediate goods and services, because those are easier to track.
• C) both intermediate and final goods and services because it is important to capture all values, regardless of which market they take place in.
• D) all values that are reported to the government.

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Definitions:

High Initial Price

A pricing strategy where a new product is introduced to the market with a relatively high price point in order to maximize revenues from early adopters.

Skimming Pricing Strategy

A pricing strategy that involves setting high prices initially to target early adopters and then lowering the price over time.

Portable Digital HD Camera

A lightweight, compact device capable of capturing high-definition videos and images, designed for ease of transportation and use on the go.

Production Costs

The total expense of manufacturing a product, including raw materials, labor, and overhead costs.