How Do We Handle Intermediate Goods and Services When Converting

question 107

Multiple Choice

How do we handle intermediate goods and services when converting from GNE to GDP?

• A) Intermediate goods are already counted in GNE, so they do not have to be added in to GDP.
• B) Imported intermediate goods are counted in GNE, so they must be subtracted from GDP to avoid double counting.
• C) Exported intermediate goods are counted in GNE, so they must be subtracted from GDP to avoid double counting.
• D) We add (to GNE) the value of imported goods and services and subtract the value of exported goods and services to get GDP.

---

Definitions:

Individualism

A social and political philosophy that emphasizes the moral worth of the individual and the importance of personal independence and freedom.

Collectivism

A cultural value or social outlook that emphasizes the good of the community, group, or society over the individual.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primal needs.

Feels Good

A subjective description of an experience that is pleasurable or positive in sensation.