Question

Final goods or services used to compute GDP refer to:

A) Goods and services in the production stage.
B) Intermediate goods and services.
C) End products consumed by the final user.
D) Non-essential items excluded from GDP calculations.

Answer 1

Final goods used to compute GDP are the end products consumed by the final user. Intermediate goods and non-essential items are excluded from GDP calculations to avoid double counting.

Step-by-step explanation:

GDP refers to the current value of all final goods and services produced in a nation in a year. Final goods are goods at the furthest stage of production at the end of a year. They are the end products consumed by the final user. To compute GDP, government statisticians exclude intermediate goods, which are goods that go into producing other goods, and non-essential items that are excluded from GDP calculations. This is done to avoid double counting and to accurately measure the value of goods and services produced in the economy.