The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's GDP at market prices. In other words, the government assumes that the firm itself buys those goods for future resale. With that convention in mind, decide which of the following statements is correct. Ignore illegal goods and illegal activities altogether (Assume there are no illegal activities). The question has multiple correct answers. The value of any good produced domestically in a year will be included in that year's GDP. The value of any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption. The value of any good produced domestically and sold in a year will be included in that year's GDP. Illegal goods would change the answer to NO.
The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's GDP at market prices. In other words, the government assumes that the firm itself buys those goods for future resale. With that convention in mind, decide which of the following statements is correct. Ignore illegal goods and illegal activities altogether (Assume there are no illegal activities). The question has multiple correct answers. The value of any good produced domestically in a year will be included in that year's GDP. The value of any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption. The value of any good produced domestically and sold in a year will be included in that year's GDP. Illegal goods would change the answer to NO.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's
Ignore illegal goods and illegal activities altogether (Assume there are no illegal activities).
The question has multiple correct answers.
The value of any good produced domestically in a year will be included in that year's GDP.
The value of any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption.
The value of any good produced domestically and sold in a year will be included in that year's GDP.
Illegal goods would change the answer to NO.
The value of any good produced domestically and sold in a year will be included in that year's GDP, except those produced by firms that are not sold.
The value of any good sold in a year will be included in that year's GDP.
The value of any service sold in a year will be included in that year's GDP.
The value of any good that is not sold in a year will be excluded from that year's GDP.
The values of intermediate goods used in a year in the production of final goods in that year will not be included in that years's GDP.
The value of a good that is not sold in a year will not be included in that year's GDP.
Example: cars produced in 2023 but not sold in 2023.
The values of stocks and bonds sold in financial markets will be included in GDP.
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