while estimating the national income only the value of final good and services is used
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Yes. while estimating the national income only value of final goods and services is used. If the value of intermediate goods is also added, it will cause the problem of double accounting as the value of the intermediate goods will be calculated twice.
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by counting the value of biscuit we will also get the value of flour from which biscuit is made and the value of wheat from which flour is made. Therefore, biscuit is the final goods and its value will only be counted to find the production value. value of the intermediate goods and not counted
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because in final goods , the value of intermediate goods is already added..
(intermediate goods is that good which is used in production of other goods)
so, we only added the value of final goods and services while estimating our national income...
(intermediate goods is that good which is used in production of other goods)
so, we only added the value of final goods and services while estimating our national income...
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