Which of the following goods is directly counted in GDP? 2) A) the lettuce that Subway purchases for its sandwiches B) a 12-inch Subway sandwich purchased by a student C) the bread that Subway purchases for its sandwiches D) the plastic bags that Subway purchases to wrap its sandwiches 3) Value added equals the market price of the firm's product minus 3) A) depreciation on plant and equipment. B) the price of intermediate goods. C) wages and salaries. D) the price of all factors of production

b

b

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.  

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

a 12-inch Subway sandwich purchased by a student is the only final good and thus it would be included in GDP as part of consumption spending on non durable goods

the lettuce, the bread and the plastic bags constitute intermediate goods. Including intermediate goods in the calculation of GDP would lead to double counting

answermarginal cost;

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