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 solution
Students have asked these similar questions
explain the difference between intermediate goods and final goods and give an example of each.
Distinguish the final goods or services, intermediate goods or services, and capital goods?
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 Value Added at Producer Price and Value Added at Purchaser Price. How are they calculatedarrow_forwardDefine intermediate goods and give one example of it.arrow_forwardhow to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumptionarrow_forward
- What are the major discrepancies that exist between the manufacturing activity and the consumption activity? Why do these discrepancies exist?arrow_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
- Define Value added method with example ?arrow_forwardWhich 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_forwardFinal 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_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education