Respuesta :
Answer:
Economic activity : Final goods purchased - included in GDP
Economic activity : Intermediate goods purchased - not included in GDP
Explanation:
GDP is the total value of goods & services, produced by an economy, during a period of time. It shows the level of economic activity, done with the motive of earning money, within the economy.
Final goods are the goods used for final consumption, investment. Intermediate goods are the goods used for further resale, further processing for resale.
Final goods value are included in GDP. Intermediate goods value are not included in GDP. Such, because value of intermediate goods is already included in the final good; & including them at each stage leads to double counting, over estimation of GDP.
Eg : Milk purchased by sweet shop to make sweets is an intermediate good. Sweets made, purchased by final consumers is a final good. So, value of sweets (final good) will be included in GDP. And, value of milk (Intermediate good) won't be included in GDP. Since, value of milk & value addition by sweet seller is already included in sweets value.
An economic activity that is included in the calculation of GDP is building of roads. It is included because it represents spending on final goods and services by the government.
An economic activity that is not included in the calculation of GDP is transfer payments. It is not included because it is not a production activity.
The gross domestic product are the final goods and services produced in an economy in a given year.
GDP can be calculated using the expenditure approach: = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
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