ECONOMICS
BUSINESS CYCLES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
bread
|
|
|
flour
|
|
|
cake
|
|
|
brownies
|
Detailed explanation-1: -The flour, however, is something else. It’s an intermediate good – a good used up in the process of making something. The value of the flour is automatically included in the price the customer paid for the cupcake. That’s why, when using expenditures to calculate GDP, spending on intermediate goods isn’t included.
Detailed explanation-2: -Intermediate goods are those goods which are used in the production of final goods. Some examples of intermediate goods are wheat, soil, crude oil, steel, sugar etc.
Detailed explanation-3: -1 Answer. C. Wheat used by a flour mill is an intermediate product.
Detailed explanation-4: -Intermediate inputs of an industry are the goods and services (including energy, raw materials, semi-finished goods, and services that are purchased from all sources) that are used in the production process to produce other goods or services rather than for final consumption.