3 Views

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


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

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.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books