Question

How do we come to know the total production in any one of the three sectors what are the problems associated with it how can these problem be overcome?

Answer 1

The total production can be determined by Gross Domestic Product or GDP.

Answer 2

Answer:

To know the total production in any one of the three sectors, we need to count the goods and services which involve two problems:  (i) There are too many goods and services produced so counting them is difficult.  (ii) Sometimes Intermediate goods are also counted. It is called double counting. It will not give the actual figures of goods and services produced.  (iii) These problems can be overcome by adding the values of final goods and services produced rather than the actual numbers.

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