Essay
Which of the following transactions is considered a purchase of final output? Which one is considered the purchase of an intermediate good?
(a)Albert purchased a camera from the U.S.to use on his vacation in the Bahamas.
(b)Albert purchased a roll of film to use in his camera.
(c)An owner of a bakery purchased wheat to make bread.
(d)A chocolate factory purchased milk to make chocolate.
(e)The Ford Company purchased 10 tons of steel to make cars.
(f)Sue purchased cleaning detergent to use in her newly purchased washing machine.
(g)Karen bought tomato seeds and planted them in her backyard for her own use.
Correct Answer:

Verified
(a)Final output.
(b)Final outp...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
(b)Final outp...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q191: Aggregate income is divided into four categories.They
Q192: To compute GDP, you must add up
Q193: Aggregate accounting enables us to measure and
Q194: Your economics professor asked you to use
Q195: If there are only two goods in
Q197: A one-time rise in the price level
Q198: If measurement errors did not exist, real
Q199: Real GDP can be used to accurately
Q200: If nominal GDP increased from $4 billion
Q201: Define real and nominal GDP and explain