GDP includes only the market value of (intermediate_ final) goods in the calculation because that value includes the value of the production of all intermediate goods. To include the value of final goods and all intermediate goods would lead to (exact, under-, over-) counting of the size of GDP. Value added is the market value of a firm's output (plus, minus, multiplied by, divided by) the value of inputs bought from other firms. Summing the value of the contribution made by each firm at each stage of the production process enables economists to determine GDP. The value of output produced at an American-owned factory in the U.S. is counted as GDP? (Yes, no) The value of output produced at a foreign-owned factory in the U.S.? (Yes, no) €Circle a correct answer GDP represents all domestic production within the border of the U.S. (yes, no)
GDP includes only the market value of (intermediate_ final) goods in the calculation because that value includes the value of the production of all intermediate goods. To include the value of final goods and all intermediate goods would lead to (exact, under-, over-) counting of the size of GDP. Value added is the market value of a firm's output (plus, minus, multiplied by, divided by) the value of inputs bought from other firms. Summing the value of the contribution made by each firm at each stage of the production process enables economists to determine GDP. The value of output produced at an American-owned factory in the U.S. is counted as GDP? (Yes, no) The value of output produced at a foreign-owned factory in the U.S.? (Yes, no) €Circle a correct answer GDP represents all domestic production within the border of the U.S. (yes, no)
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.2P
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