Define GDP and distinguish between a final good and an ...

[leo leo]

Define GDP and distinguish between a final good and an intermediate good. Provide examples.
 
  What will be an ideal response?

Question 2

Among countries that purchased U.S. stocks and bonds in 2015, China was the biggest customer, accounting for over 50 percent of all purchases.
 
  Indicate whether the statement is true or false

[nathang24]

Answer to Question 1

GDP is the market value of all the final goods and services produced within a country in a given time period. A final good or service is an item that is sold to the final user, that is, the final consumer, government, a firm making investment, or a foreign entity. An intermediate good or service is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service. For instance, bread sold to a consumer is a final good, but wheat sold to a baker to make the bread is an intermediate good. Distinguishing between final goods and services and intermediate goods and services is important because only final goods and services are directly included in GDP; intermediate goods must be excluded to avoid double counting them. For example, counting the wheat that went into the bread as well as the bread would double count the wheatonce as wheat and once as part of the bread.

Answer to Question 2

FALSE

[leo leo]

YES! Correct, THANKS for helping me on my review

[scottmt]

Thanks for the timely response, appreciate it