Economics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280595
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 25.A, Problem 1DQ
To determine
The difference between final goods and intermediate goods and the usefulness of the value-added method.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
explain the difference between intermediate goods and final goods and give an example of each.
How to classify goods as consumption goods and capital goods? Is there any specific way to do so?
For each of the following products state if it is a final or intermediate good and explain why? A brick, a cell phone, and a barrel of crude oil.
Chapter 25 Solutions
Economics: Principles and Policy (MindTap Course List)
Knowledge Booster
Similar questions
- what is the value of production in dollars (aka, Josel's income or value of production)? Explain your answer.arrow_forwardWhat is the distinction between total value and unit value according to Mises?arrow_forwardwhat is Value Added at Producer Price and Value Added at Purchaser Price. How are they calculatedarrow_forward
- how to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumptionarrow_forwardAn automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?arrow_forwardA farmer produces rutabagas and sells them to the agricultural firm Conagra. Conagra packages the rutabagas with other vegetables in a salad blend that it sells to the public. The rutabagas produced by the farmer would be considered invetory goods, transitory goods, final goods or intermediate goods?arrow_forward
- Which of the following is an example of a final good or service? Jet Fuel bought by Northwest Airlines to power its fleet of planes. O A brand-new economics textbook purchased by an SCU student. Beef bought by a restaurant owner from a wholesale food distributor. Paint purchased by Ford, Inc. used to paint their new fleet of Mustangs.arrow_forwardwhats the difference between marginal physical product (MPP) and the marginal rate of subsitution (MRS)?arrow_forwardDraw a circular flow diagram. Determine the parts of the model that correspond to theflow of goods and services and the flow of dollars for each of the following activities.i. Tupperware Company earns RM10 revenue on average from each water bottlesold.ii. Carmen earns RM6 wages per hour working at Seoul Garden restaurant.iii. Ms. Kek spends RM40 to get a haircut.iv. Ms. Goh earns RM3, 000 rental income from her 10 percent ownership of landproperty.arrow_forward
- Final goods and services a. Are only foods and services consumed by people b. Are goods and services tht are produced by firms, not individuals c. Include capital and investories d. Do not include inventories but include capitalarrow_forwardDefine Value added method with example ?arrow_forwardUse the numbers to calculate Econ Land's Green GDParrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you