Question

why is the value of only final goods and services are included in the estimation of gdp?explain with the help of an example.

Answer 1

Heya..

Answer ______

• Yes, only the value of final goods are included in the GDP estimation because it's important to avoid the problem of double counting...

• If we add the value of intermidiate goods also then it will be the double counting as it's value is already included in the final value. ...

Ex :-

Suppose the final value of a biscuit packet is :- 10 RS ...

And it's ingredients as
floor - 3 RS
Sugar - 5 RS
Ghee - 2 RS

If we will add the 10rs and separately all the ingredients then it will double counting becz it's ingredients cost is automatically is 10 ...

Thank you

Answer 2

Hey mate your answer is here