Double counting in the resource cost-income approach to GDP refers to
A) corporate income being taxed twice
B) the amount of income taxes paid to states that is taxable by the federal government
C) calculating GDP twice using the income and expenditures methods
D) adding the value of exports to GDP and subtracting the value of imports
E) counting the total value of a final output in addition to the value of the inputs used to make it

Question

Quizplus · Accepted Answer

Double counting in the resource cost-income approach to GDP refers to counting the total value of a final output in addition to the value of the inputs used to make it, which results in an overestimation of GDP. This is because the value of the inputs is already included in the value of the final output. Therefore, to avoid double counting, only the value of the final output should be included in the calculation of GDP.

Double Counting in the Resource Cost-Income Approach to GDP Refers