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PRC-3 · Chapter 13 · Question 8 of 50

To avoid the error of 'double counting' when calculating GDP, statisticians only count the value of final goods. Alternatively, they can calculate GDP by summing up the:

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: A) Value added at each intermediate stage of production

Explanation

To prevent counting the same resources multiple times (like the wheat in flour, and the flour in bread), statisticians either count only the final good, or sum the 'value added' at each production stage.

All 50 questions in Chapter 13National Income and Its Determination MCQs with answers

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