Intermediate vs. Final Goods
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Are the following outputs considered an intermediate good, a final good, or neither for purposes of calculating GDP in the current year? For each answer, just say intermediate good, final good, or neither.
a. New tires put on a new Corvette at Big O Tire store
b. The net sales price of a home built in 1990 when it is resold in 1997
c. The commission earned by a stock broker on the sale of stock
d. The net price that is paid for 1000 shares of stock in Dell.
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Solution Summary
The solution determines whether goods are intermediate or final.
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a. New tires put on a new Corvette at Big O Tire store
This is a final good. The tires are being purchased separately from the car.
b. The ...
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