The calculation of GDP does NOT include the value of:
A) Firestone tires sold at your local garage.
B) Bridgestone tires purchased by Ford Motor Co.
C) Goodyear tires purchased by Canadian Security Intelligence Service (CSIS).
D) Michelin tires purchased by Canadian car collectors.

Question

Quizplus · Accepted Answer

The calculation of GDP does not include intermediate goods, which are used in the production of final goods. Bridgestone tires purchased by Ford Motor Co. are considered intermediate goods because they are used in the production of cars, which are the final goods.

The Calculation of GDP Does NOT Include the Value Of