ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the intermediate value may have different stages
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intermediate value cannot be calculated
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intermediate value is calculated into GNP
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intermediate value is included in the value of the final good
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Detailed explanation-1: -Intermediate goods are not included in the calculation of a country’s GDP. The reason for not including them in the GDP is because it will lead to counting the value of the goods twice, and the norm is to count the price of final goods only once.
Detailed explanation-2: -GDP only includes final products-goods for sale, rather than intermediate goodsthat are used to make final products.
Detailed explanation-3: -Only final products and services are accounted for since a firm has to stay away from numerous counts. The costs take care of the expense of every single transitional phase when producing the product or item and services that were utilized to create the final yield.
Detailed explanation-4: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.
Detailed explanation-5: -This is because the value of intermediate goods is already reflected in the value of the final goods. Thus, if the value of these goods is also included in the current year, it will lead to the problem of double counting of the value of those goods.