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Measuring National Income · Question 7 of 69

Question 7

MediumOriginal question

Double counting can be avoided by

counting only value added, or only final goodsCorrect answerYour answercounting only intermediate goodsCorrect answerYour answercounting only exportsCorrect answerYour answercounting the sales of every firmCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

The value added method and the final product method both count each input only once.

Concept: Avoiding double counting
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsValue added method and double counting

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