Intermediate goods are goods that are used up entirely in the production of final goods. As such, intermediate goods
A. are included in Gross Domestic Product (GDP) only if produced within the borders of the United States.
B. make up only a small portion of Gross Domestic Product (GDP).
C. are excluded in calculating Gross Domestic Product (GDP) because they are not valuable.
D. are excluded in calculating Gross Domestic Product (GDP) because to do so would be to double count them.
Answer: D
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a. vertical; output b. horizontal; price c. upward-sloping; price d. horizontal; output e. downward-sloping; price
In a developed country, in which of the following examples would labor-intensive methods work better than capital-intensive methods?
a. Four tons of dirt must be moved as quickly as possible. b. A poem must be perfectly written to honor a retiring professor. c. One thousand transmission cases must be cast from aluminum. d. A vast reserve of oil must be retrieved from deep underground.
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a. increases; decreases b. increases; increases c. decreases; decreases d. decreases; increases
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A. net worth. B. liabilities. C. required reserves. D. loans.