Gross domestic product is calculated by summing up the total quantity of goods a
ID: 1217651 • Letter: G
Question
Gross domestic product is calculated by summing up the total quantity of goods and services in the economy. the total quantity of goods and services produced in the economy during a per the total market value of goods and services in the economy. the total market value of final goods and services produced in the economy Which of the following transactions represents the purchase of a final Starbucks purchases coffee beans. Delta buys a new European-made jetliner. Apple computer buys computer processors from Intel Your father buys a new John Deere riding lawn mower. Which of the following is not directly counted in GDP? investment expenditures government purchases Intermediate goods consumer foods The purchase of a new automobile is include in consumption expenditures on services. consumption expenditures on nondurable goods consumption expenditures on durable goods investment expenditures. The purchase by a house hold in china of CD produced consumption expeExplanation / Answer
Answers:
10. Gross domestic product is calculated by summing up:
D) The total market value of final goods an services produced in the economy during a period of time.
11. Which of the following transactions represents the purchase of final goods?
D) Your father buys a new John Deere riding lawn mower
In the above examples all are intermediately goods except (D); whereas (D) is a final good. We can directly enjoy such type of goods and services.
12. Which of the following is not directly counted in GDP?
C) Intermediate goods
All of the above calculates directly while counting the GDP except intermediately goods; because intermediately goods means not compete properly yet. However under the value added method it would be considered during the calculation of the GDP.
13. The purchase of a new automobile is included in:
C) Consumption expenditure on durable goods
The new automobile purchasing does not need to be purchased frequently because they are made to last for a long time. So this is come under durable goods.
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