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Econ 100B Section 3 Answers

Robot for a factory think of these as intermediate

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Unformatted text preview: ely used up in the production process. 4) What do I mean by a ‘final’ good? Why wouldn’t I want to count the component parts? What are the exceptions? a) Value added technique adds up the value of all final goods and services in the country by subtracting the cost of the inputs used for final good production b) Two exceptions: Capital Goods (ex. robot for a factory), think of these as intermediate goods that improve productivity, or result in an increase in economic activity, and Inventory Investment, the change in inventories during the time period (not sold, stocked up, etc) Newly Produced: keeps us from double counting - Used books don’t get counted, etc. SPRING 2014 ECONOMICS 100B GSI: KRISTYN ABHOLD Specific Time Period: GDP is the value of final goods and services produced over the course of a quarter or year. GDP is thus a flow, not a stock. 5) Which of the following is part of the United States’ 2014 GDP? a. My used macroeconomic textbook i. Used goods are not included in current GDP. This was counted when the book was first sold. b. My new Cal Bears sweatshirt, a Christmas gift. i. That was sold in 2013, so it doesn’t count. c. The glass of lemona...
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