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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Transcribed Image Text:1. () GDP measure as a "value added" in the production process and the issue of “multiple counting"
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) ECircle a correct answer
GDP is a m
diverse collection of goods and services over time. It is not possible to count the number of goods and
compare them because the types of goods change over time. It is possible to count the number of goods
and attach monetary values to them to reflect their relative worth and then compare the value of the
output at different points in time. That is, m
to make it possible to compare the relative worth of a
is the common denominator for GDP measure.
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