The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).

Name: The value of tires purchased by a company to use on its cars is not included when calculating the gross domestic product (GDP).
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Question

Quizplus · Accepted Answer

Tires purchased by a company to use on its cars are considered intermediate goods, which are already included in the final price of the cars. Therefore, they are not counted separately in the calculation of GDP to avoid double-counting.

The Value of Tires Purchased by a Company to Use