Question

how do we count varios goods and services? What precautions should be taken while counting goods and services​

Answer 1

Answer:

How do you count various goods and services and know the total production in each sector of economy?

as thousands of goods and services are produced, it is an enormous task to add up all these . To get to this problem economists suggested that the value of goods and sevices should be used rather than adding the actual numbers.

But only one precaution is to be undertaken i.e., only the final value of the goods and services should be counted as it already includes the value of all intermediate goods

Answer 2

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.