Question

How do we count the various goods and services to calculate their final value? (5 points to be given)​

Answer 1

Answer:

While calculating the value of the goods produced, we should only count the value of the final goods produced.

We should not count or add the value of the intermediate goods, because the value of the final goods already includes the value of the intermediate goods which are used in making the final goods.

Example: the value of Rs. 50 for a packet of biscuits (final good) already Includes the value of flour, sugar, and other intermediate goods in it.