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Questions and Answers
What defines intermediate goods in economics?
What defines intermediate goods in economics?
- Goods consumed for personal satisfaction
- Goods used in the production process (correct)
- Finished goods ready for consumption
- Capital goods used for investment
Which of the following is an example of an intermediate good?
Which of the following is an example of an intermediate good?
- Bread purchased by a consumer
- Flour used by a bakery to make bread (correct)
- Cars sold to individual buyers
- Clothing sold in a retail store
What is the key characteristic of final goods in the context of economic classification?
What is the key characteristic of final goods in the context of economic classification?
- They undergo further processing.
- They are consumed for personal satisfaction. (correct)
- They are used as inputs in production.
- They have no resale value.
In the national income accounting framework, how are intermediate goods treated?
In the national income accounting framework, how are intermediate goods treated?
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Which statement best describes the purpose of categorizing goods as intermediate or final in economic analysis?
Which statement best describes the purpose of categorizing goods as intermediate or final in economic analysis?
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Why are intermediate goods not included in the calculation of final GDP?
Why are intermediate goods not included in the calculation of final GDP?
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Which of the following is example of final good?
Which of the following is example of final good?
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