How do we count various goods and services in our cou?
Answers
Explanation:
The following guidelines aid in calculating the total production in a given sector:
- The value of the goods are calculated rather than the numbers of the individual goods.
-The value calculated is of the final products and services which automatically includes the values of the intermediate goods and services.
-The total production is then acquired by adding the total value of the final value of the goods and services in a given sector. This will give us the GDP in this sector.
Explanation: 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 services 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.