Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 24.A, Problem 1DQ
To determine
The difference between final goods and intermediate goods and the usefulness of the value-added method.
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explain the difference between intermediate goods and final goods and give an example of each.
Distinguish the final goods or services, intermediate goods or services, and capital goods?
How to classify goods as consumption goods and capital goods? Is there any specific way to do so?
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Economics: Principles & Policy
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- For each of the following products state if it is a final or intermediate good and explain why? A brick, a cell phone, and a barrel of crude oil.arrow_forwardOS consumer goods in terms of capital goods in Figure below?arrow_forwardwhat is Value Added at Producer Price and Value Added at Purchaser Price. How are they calculatedarrow_forward
- What is the distinction between total value and unit value according to Mises?arrow_forwardDefine intermediate goods and give one example of it.arrow_forwardhow to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumptionarrow_forward
- What are the major discrepancies that exist between the manufacturing activity and the consumption activity? Why do these discrepancies exist?arrow_forwardAn automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?arrow_forwardA farmer produces rutabagas and sells them to the agricultural firm Conagra. Conagra packages the rutabagas with other vegetables in a salad blend that it sells to the public. The rutabagas produced by the farmer would be considered invetory goods, transitory goods, final goods or intermediate goods?arrow_forward
- Define Value added method with example ?arrow_forwardWhich of the following is an example of a final good or service? Jet Fuel bought by Northwest Airlines to power its fleet of planes. O A brand-new economics textbook purchased by an SCU student. Beef bought by a restaurant owner from a wholesale food distributor. Paint purchased by Ford, Inc. used to paint their new fleet of Mustangs.arrow_forwardFinal goods and services a. Are only foods and services consumed by people b. Are goods and services tht are produced by firms, not individuals c. Include capital and investories d. Do not include inventories but include capitalarrow_forward
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