Question: Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?

Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

GDP is the market value of all final goods and services produced domestically in the year Intermedia... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-A-C-P-A(3587).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

The expenditures on tires by the Ford Motor Company are not included directly in GDP statistics while consumer expenditures on replacement tires are included. Why?

Explain the difference between final goods and intermediate goods. Why is it sometimes difficult to apply this distinction in practice? In this regard, why is the concept of value added useful?

Multiple Choice Questions: 1. Which of the following will be counted as part of this years U.S. GDP? a. Goods produced last year but not sold until this year. b. Goods produced this year by an...

3. National Income Accounting Explain why intermediate goods and services usually are not included directly in GDP.

Part I Identify the component of aggregate expenditure to which each of the following belongs: a . A U . S . resident s purchase of a new automobile manufactured in Japan b . A household s purchase...

(National Income Accounting) Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?

(National Income Accounting) Explain why intermediate goods and services generally are not included directly in GDP. Are there any circumstances under which they would be included directly?

2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition,...

1. Activities included (or not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the in a given period of time. Based on this definition,...

ANSWER: (A, B, or C) The gross domestic product (GDP) of the United States is defined as the A. market value of, B. cost of producing, C. wholesale cost of all A. final and intermediate goods and...

Financial issues is the assessment of need and its thoughts for the use of assets, making of work and things, improvement of creation and government help long haul, and a psyche blowing gathering of...

Presented below are a number of facts related to Weller, Inc. Assume that no mention of these facts was made in the financial statements and the related notes. Instructions Assume that you are the...

3 ) You are performing a review of a lawyer s books and records. The lawyer s office is in Ontario where the HST rate is 1 3 % . While you are in the lawyer s office, you are asked to calculate the...

6 During times of significant organisational change, such as downsizing and layoffs, the grapevine becomes more active as anxious employees share organisational news and rumours. As a manager, what...

Discuss the ways in which the following conditions might affect the opportunity cost of going to a movie tonight: a. You have a final exam tomorrow. b. School will be out for one month starting...

What are the major differences between a pure capitalist system and a pure command system? Is the United States closer to a pure capitalist system or to a pure command system?

The Opportunity Cost of College) During the Vietnam War period, colleges and universities were overflowing with students. Was this bumper crop of students caused by a greater expected return on a...

One year ago, your company purchased a machine used in manufacturing for $95,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for...

(1) The equation of the regression line is Y = a + bX. Match the following symbols to the description to the right. (1) Denotes the variable plotted on the horizontal axis and called the explanatory...

The following data represents the percentages of family income allocated to groceries for a random sample of 12 shoppers: 26 28 30 37 33 30 29 39 49 31 40 For these data, Calculate: 6.1 the mean (4)...