Question

please help me in this question and please give a proper explanation​

Answer 1

Answer:

C) We would be counting the value of the intermediate goods two times.

Explanation:

Before giving you the explanation of the answer. I would like to define some terms.

What is GDP?

GDP or Gross Domestic Product is the total value of all final goods and  services produced during a particular year in a country.

What are intermediate goods?

An intermediate good is a product utilized to produce a final good or finished product.

Now coming to the question.

According to the question,

Gram and Floor are intermediate goods, as there are used to give you a finished product that is noodles and according to the defination of GDP, we only consider the total value of the final good.

Let's look at the scenario,

• Firstly, the farmer sells the gram to a flour mill for ₹ 20 per Kg, here he might be including his profit in this.
• Now, the flour mill sells the flour to the noodle company for ₹40 per kg, here, again he must be including the profit cost in it and selling it.
• Lastly, the noodle company sells the noodle to the market at the cost of ₹100, here also the company includes the profit cost and then sells it

Thus, The cost of the gram and flour is included in the cost of the Final good that is noodles.

I hope it helped you...

If you found my answer useful, please do mark the answer as brainliest!!!