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

Question

Quizplus · Accepted Answer

National income accountants can avoid multiple counting by only counting final goods. If both intermediate and final goods are counted, then the value of the intermediate goods would be counted multiple times as it is included in the value of the final good. Transfer payments are not included in the calculation of national income as they are simply transfers of money and do not represent actual production of goods and services.

National Income Accountants Can Avoid Multiple Counting by