Post Utme Eksu 2022 Economics Question 7

Practice objective / multiple choice question 7 from the 2022 Post Utme Eksu Economics examination.

Post Utme Eksu 2022 Economics Objective / Multiple Choice
Question 7 POST_UTME_EKSU • 2022 • ECONOMICS • objective

A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, this calculation excludes the value of intermediate goods used in the production process. Explain why this exclusion is necessary.

Answer Options

Correct Answer A. The exclusion of intermediate goods is necessary because they are not final goods and services, and therefore do not contribute to the country's GDP.
B. The exclusion of intermediate goods is necessary because they are not produced within the country's borders, and therefore do not contribute to the country's GDP.
C. The exclusion of intermediate goods is necessary because they are not sold to consumers, and therefore do not contribute to the country's GDP.
D. The exclusion of intermediate goods is necessary because they are not included in the national income accounts, and therefore do not contribute to the country's GDP.
Correct Answer
A
Correct Option:
The exclusion of intermediate goods is necessary because they are not final goods and services, and therefore do not contribute to the country's GDP.

About This Question

This is Post Utme Eksu 2022 Economics Question 7. It is one of the objective questions from the 2022 Post Utme Eksu Economics examination.

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