Question

What problems arise from the inclusion of the value of the intermediate item into national income ?

Answer 1

${\texttt{\huge{\blue{ANSWER !!}}}}$

To avoid the problem of double counting, only the value of the final stage, the retail price, is included, and not the value added in all the intermediate stages - the costs of production, plus profits. In short, national income is the value of all the final output of goods and services produced in one year.

Answer 2

avoid the problem of double counting, only the value of the final stage, the retail price, is included, and not the value added in all the intermediate stages - the costs of production, plus profits. In short, national income is the value of all the final output of goods and services produced in one year..

Hope you understood