Question

What precautions should be taken while calculating the value of the goods produced and why?(3marks)(write in points)

Answer 1

Answer:

following precautions should be taken while calculating the value of the goods produced in a country -

• value of only final goods and services should be taken
• the value of intermediate goods should not be included in calculation of gdp
• for example the value of a 20 rs biscuit also includes the value of its constituents like sugar,wheat flour etc. so only the final price of good should be taken in calculating GDP.

Answer 2

Answer:

following precautions should be taken while calculating the value of the goods produced in a country -

value of only final goods and services should be taken

the value of intermediate goods should not be included in calculation of gdp

for example the value of a 20 rs biscuit also includes the value of its constituents like sugar,wheat flour etc. so only the final price of good should be taken in calculating GDP.