How do we count the various goods and services and know total production in each sector?
Answers
Answer:
The various goods and services are counted on the basis of the value of each good or services, not on the basis of actual numbers.
• The value here is referred to the value of final goods and services not the value of intermediate goods.
• It is understood that the value of final goods already includes the value of all intermediate goods that are used in making the final goods.
• The total production of each sector is calculated by adding the value of all final goods and services of the sector in a year.
• The total production of all three sectors within a country is known as the Gross domestic product of the country.
I hope it is helpful
Answer:
Goods and services are the output of the economic system. Goods are tangible items sold to customers, while services are tasks performed for the benefit of recipients. Examples of goods are automobile, appliance, and clothing. Examples of services are legal advice, house cleaning and consulting services.
Explanation:
Different goods and services are calculated based on the value of each good or service, not actual numbers.
• Value here refers to the value of final products and services, not the value of intermediate products.
• It is understood that the value of the final good already includes the value of all intermediate products that are used in the production of the final good.
• The total output of each sector is calculated by adding the value of all final products and services of the sector for the year.
• The total output of all three sectors in a country is known as country X's gross domestic product.
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