A Pennsylvania-based company sells steel to a Japanese manufacturer for $8,000. The Japanese company turns the steel into auto parts (in Japan) and sells them to a U.S. car company for $15,000. I buy the car for $33,000. Which of the following statements about the transactions above is correct, according to the material discussed in class?
(a) $8000 are not included since it corresponds to an intermediate input
(b) We should only focus on the final good, never on intermediate inputs
(c) We should measure the company’s profits
(d) We have to add exports, even if they are intermediate inputs