How are intermediate goods treated in the calculation of GDP? ...

[sc00by25]

How are intermediate goods treated in the calculation of GDP?
 
  A) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input.
  B) Their value is counted separately, but is not included as part of the value of the final good for which they are an input.
  C) They are included only if they are imported.
  D) Their value is not counted separately, but included as part of the value of the final good for which they are an input.

Question 2

What does it mean to internalize an externality?
 
  What will be an ideal response?

[TINA]

Answer to Question 1

D

Answer to Question 2

Internalization of an externality occurs when decision makers weigh the external costs and benefits of their actions.

[sc00by25]

Wow, this really help

[aliotak]

Thanks for the timely response, appreciate it