How are intermediate goods treated in the calculation of GDP?
A) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input.
B) Their value is counted separately, but is not included as part of the value of the final good for which they are an input.
C) They are included only if they are imported.
D) Their value is not counted separately, but included as part of the value of the final good for which they are an input.
D
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In a small, agricultural nation, consumers buy only steak and potatoes. In 2009, the base year, the typical consumer spent $potatoes on strawberries and $100 on steak. The price of potatoes is $1 and the price of steak is $2 in 2009
In 2009, the price of potatoes is $2 and the price of steak is $1. The CPI for 2010 is A) 80. B) 125. C) 100. D) 110. E) 25 percent.
The average fixed cost curve increases as output increases
a. True b. False Indicate whether the statement is true or false