Question

Explain How The Estimation Of Value Of Final Good Is Done

Answer 1

Answer:

While estimating the value of final goods is done, then the estimation of the value of the intermediate good is also done. If we calculate the value of the intermediate goods separately then it would be difficult to estimate the exact value of the goods. We would be calculating the price of intermediate goods two times.

For example, when the price of a packet of biscuit is estimated then the price of the intermediate goods like flour, glucose, sugar and other ingredients is added up to it.