ECON 105 (Economics) Midterm Exam Study Questions and Answers.

ECON 105 (Economics) Midterm Exam Study Questions and Answers.
Can commodities be final goods?
Correct Answer -Yes. An apple you just straight up eat. If u make apple pie
it is intermediate.
Value added concept, double counting concept, and formula
Correct Answer -Value added is the payment owed to a firm's factors of
production (wages and capital) and also profits
Value added = Sales revenue - cost of intermediate goods
Double counting is counting the
Sum of all values added in a economy is...
Correct Answer -It's total output
A primary good is also known as a
Correct Answer -Commodity
A mine is what to a mine-making firm vs a steel making firm
Correct Answer -It is a commodity for the mine-making firm and a
intermediate good for the steel makers