What is the difference between an intermediate good and a final good?
a. Final goods are adjusted for depreciation, intermediate goods are not.
b. Final goods are adjusted for changes in the value of the dollar, intermediate goods are not.
c. In GDP calculations, final goods are counted as consumption spending, intermediate goods are counted as private investment spending.
d. There is no meaningful difference between them.
e. Final goods are finished and ready for sale; intermediate goods require further processing.
E
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When the nominal exchange changes from 110 yen per dollar to 120 yen per dollar, the dollar has:
A. appreciated. B. depreciated. C. become undervalued. D. become overvalued.
Which geographic coincidence affected gasoline prices the most during 2005?
A. A tsunami hit the one area in the world most responsible for producing U.S. gasoline, Indonesia. B. Two major hurricanes affected the refining intensive areas of New Orleans and Houston. C. An earthquake happened to hit the energy-sensitive areas in and around Iran. D. There were tornado related electrical outages in the industrial Midwest.
The increasing popularity of hotdogs in a food joint has pushed up their price, making it unaffordable for many students living in the surrounding areas. This is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) free-rider problem