Author Question: Which of the following will be categorized as an intermediate good in national income accounting? ... (Read 117 times)

shenderson6 · **on:** Jun 30, 2018

Which of the following will be categorized as an intermediate good in national income accounting?
a. The value of oregano used as a seasoning for pizzas
b. The crops consumed by a farmer's family members
c. The present value of a car produced a couple of years ago
d. A clunker sold during the current year
e. The value of an antique piece of jewelry handed down over generations in a family

Question 2

If the value of intermediate goods and services are included in GDP, then:
a. GDP would be understated.
b. GDP would act as a true indicator of economic welfare.
c. there would be double-counting.
d. it would lead to depreciation.
e. GDP would be able to give an exact estimate of the inventory in an economy.