National income accountants can avoid multiple counting by:
A)including transfers in their calculations.
B)counting both intermediate and final goods.
C)only counting final goods.
D)only counting intermediate goods.

Question

Quizplus · Accepted Answer

National income accountants can avoid multiple counting by only counting final goods. Intermediate goods are already accounted for in the final price of a good or service, so counting them separately would result in double-counting. Transfers, such as government transfer payments, are not included in national income calculations as they are not a part of the production process.

National Income Accountants Can Avoid Multiple Counting By