Intermediate and final goods production

Assignment Help Business Economics

Reference no: EM13863466

Explain why when using the expenditure method for determining GDP do we not include expenditure on intermediate goods, but when using the income method, we use the income of factors of production for both intermediate and final goods production?

Reference no: EM13863466

Questions Cloud

Trial balance-account balances : The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, the end of its fiscal year: cash, $30,000; accounts receivable, $25,000; inventories, $39,000; equipment (net), $94,000; accounts payable, $28,00..

Managerial accounting : Write an outline for the following research paper topic: Managerial Accounting: How managers can use accounting information to make better decisions.

Transaction on individual items of the accounting equation : The company completed consulting work for a client and immediately collected $6,500 cash earned. The company completed commission work for a client and sent a bill for $5,000 to be received within 30 days. Enter the impact of each transaction on indi..

Bookkeeper used straight-line depreciation : The first audit of the books of Bruce Gingrich Company was made for the year ended December 31, 2015. At the beginning of 2013, the company purchased a machine for $494,300 (salvage value of $52,600) that had a useful life of 6 years. The bookkeeper ..

Intermediate and final goods production : Explain why when using the expenditure method for determining GDP do we not include expenditure on intermediate goods, but when using the income method, we use the income of factors of production for both intermediate and final goods production?

Size of smallest payment and largest payment : A boat is purchased by financing $40000. The loan is to be paid over a 5 year period with annual payments based on a 12% interest rate. Each successive payment is scheduled to be 10% greater than the previous one. Determine the size of the smallest p..

Are innovators always bad or criminals : Are innovators always bad or criminals? Can you think of any examples in which people accepted societal goals, rejected the means, and came up with their own legal and creative way of achieving the goals? Please explain.

What are the key internal influences-external influences : Map out how you think your potential customer goes about making his or her purchase decision for the product/service your venture will market. What are the key internal influences (e.g., motivation) and external influences (e.g., personal influences)..

Balance of trade : Suppose the country of Liliput exported 229 billion dollars worth of goods while they omported 489 bilion dollars worth of goods in the last calendar year. Calculate Liliput's balance of trade:

User Account

All Pages