QUESTION 13 GDP can be measured in terms of expenditures but not income, since i

Question

QUESTION 13 GDP can be measured in terms of expenditures but not income, since income is subject to taxation True False QUESTION 14 GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case. O True O False QUESTION 15 Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP True O False QUESTION 16 The PPI is a price index that measures the cost to consumers of a typical basket of goods sold by firms True O False QUESTION 17 When you purchase a run-down 1965 Ford Mustang to restore and resell, the purchase of the vehicle and all restoration expenditures are included in current GDP. O True False

Explanation / Answer

Question 13

GDP can be measured in terms of income as well. The income method of measuring GDP adds up factor income received by each factor of production during production process to ascertain GDP.

Thus, the given statement is False.

Question 14

Intermediate goods are not included in GDP as their value is already included in final goods in whose production such good is used. Taking them seperately will lead to problem of double accounting.

It has been stated that sliced bread used by a sandwich shop is an intermediate good with respect to sandwich shop.

Being an intermediate good, it will not be included in the GDP.

Thus, the given statement is True.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.