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Why are second-hand goods excluded from the output method?

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Question

Why are second-hand goods excluded from the output method?

Options

  • They are exports.

  • They are additions to inventories.

  • They were counted in the year of original production.

  • They are always intermediate goods.

MCQ
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Solution

Second-hand goods do not represent current production. They were already counted in the year of original production.

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