Which of the following helps economists avoid double counting in computing of GDP?
A)Including goods and services produced only within a given area.
B)Only include transfer payments made by the government and not individuals.
C)Only include capital purchases by corporations and not by family-owned firms.
D)Avoiding the use of intermediate goods in calculating GDP.

Question

Quizplus · Accepted Answer

Including intermediate goods in the calculation of GDP will result in double counting, as the value of those goods will already be included in the value of final goods. By avoiding the use of intermediate goods in calculating GDP, economists can ensure that only the value of final goods and services is accounted for, thus avoiding double counting.

Which of the Following Helps Economists Avoid Double Counting in Computing