Question

17.Not every good (or service) that is produced and sold needs to be counted. It makes sense only to include the ………… to get the total production? *

values of goods and services in production
final goods and services
adding up the actual numbers of goods
goods and services in the three sectors​

Answer 1

The correct fill in the blank is final goods and services.

• The statement is applicable while counting multiple commodities and know the total production in  each sector.
• There is one thing to keep in mind. To determine total production in each sector, not every commodity produced and sold must be counted. If this is the case, the GDP will be inflated due to double counting.
• All intermediate items are already included in the value of final goods. It is simply logical to include the final goods.