Question : In the product method for measurement of national income, we need to deduct the value of intermediate goods to ____.
Option 1: analyse factors of production
Option 2: avoid over consumption
Option 3: avoid double counting
Option 4: estimate aggregate value of expenditure
New: SSC MTS Tier 1 Answer key 2024 out
Don't Miss: Month-wise Current Affairs | Upcoming Government Exams
New: Unlock 10% OFF on PTE Academic. Use Code: 'C360SPL10'
Correct Answer: avoid double counting
Solution : The correct option is to avoid double counting.
In the product method for measuring national income, we need to deduct the value of intermediate goods to avoid double counting . Intermediate goods are those used in the production process and are included in the final product's value. Deducting their value ensures that only the value added at each stage of production is considered, preventing the counting of the same value multiple times in the calculation of national income.
Answer Key | Cutoff | Selection Process | Preparation Tips | Eligibility | Application | Exam Pattern
Question : Which of the following options does not constitute a national income measurement method?
Question : The GDP estimation method measuring the aggregate value of factor payments is called ______.
Question : The product method used to calculate the annual value of goods and services produced is also called___________.
Question : If we deduct depreciation from GNP the measure of aggregate income that we obtain is called _____.
Question : If we sum the gross value added of all the firms of the economy in a year, we get a measure of the value of the aggregate amount of goods and services produced by the economy in a year. Such an estimate is called ______.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile