What is meant by a final good or service as opposed to an intermediate good or service? Why are only final goods and services included in the calculation of GDP?
A final good is a good purchased by its final user, while an intermediate good is a good used in the production of a final good. Only final goods are included to avoid double counting. The price of a tire purchased by Ford, for example, is reflected in the final cost of the vehicle and will be counted at that point. If Ford's purchase was also counted, the tire would be counted twice.
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Shirley has to choose between a two-day trip and a three-day trip to Hollywood. The table below shows the expected benefit and cost for the different days
Using optimization in levels and optimization in differences, determine what Shirley's optimum decision should be. Does the decision differ with the techniques used? Which technique is faster to implement? Day Cost Benefit 1 $750 $800 2 $900 $1,000 3 $600 $800
The required return on equity for an individual stock includes which of the following?
A) systemic risk B) idiosyncratic risk C) risk-free interest rate D) all of the above