Social Sciences, asked by sanjeev45091, 1 year ago

How do we count the various goods and services and know the total production in each sector 0?

Answers

Answered by varshaaggarwal78
1

We calculate GDP to count value of goods and services. It is the market value of final goods and services produced in a country in a year. (i) The final value of goods and services produced in a sector is calculated. (ii) Only the final value of a product or service is taken into, account to avoid double counting. For example, suppose a farmer sells wheat to a flour mill for ? 8. The mill grinds it and sells it to a baker for ? 10 and then baker after converting it into a bread sells to a consumer for ? 20. Here the final product is bread so ? 20 should be added not ? 8 + ? 10 + ? 20 = ? 38.  • only the value of final goods is calculated because the value of final goods includes the value of all intermediategoods that are used in making the finalgoods.

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