00:01
Since we use gdp to determine a nation's health, we can only add the market value of the goods and services produced in the united states, domestic production, for a single year.
00:13
We also do not add the value of intermediate goods, ingredients or items used to produce final products.
00:19
We only count the value of final goods and services which have been produced within the year.
00:24
Including the value of both intermediate goods and the final goods of services would lead to double counting and increase the value of gdp.
00:32
For each item, place either an i if the scenario is an intermediate product or an f if it is a final product.
00:43
A, we have shampoo, is bought and used by a hairstylist in the mall.
01:05
This is a final good.
01:11
It is a final product bought by the final consumer.
01:14
The hairstylist bought and used it.
01:17
Therefore, it is a part of gdp.
01:18
B, a family buys some finger paint for their child to use.
01:44
This is a final good.
01:48
The family is the one who bought and is using that product.
01:53
Therefore, it is a part of gdp.
01:56
C, a person buys a tire who replace a flat one on their car.
02:30
This is a final good because they are using, that tire, the person who will, so it's a final product bought by the final consumer because the consumer is the person that's replacing the flat tire on their car.
02:45
Therefore, it is a part of gdp.
02:49
D, or d actually, a hotel chain buys a box of pens.
03:09
This is a final good and will not be included in gdp or will be included in gdp because the hotel is the final consumer.
03:19
Yes, other people might be using the pens, but the hotel is the one who bought and is ultimately using those pens.
03:27
E, flour is bought and used to bake a cake to be sold at a bakery.
03:58
This is an intermediate good or product.
04:09
It's an intermediate product because the flour will be made into cakes.
04:13
The flower isn't what the ultimate final consumer is buying.
04:16
The final consumer is the person buying the cake in which flower.
04:20
Was used.
04:22
So therefore, it would not be included in gdp.
04:25
F, someone buys a steak to grill at home.
04:39
This is a final product because the person buying the steak is the one grilling it to eat at home...