Question

The best reason economists take only final goods and services into account when calculating GDP is that

this is the way things have always been done, but there is no particular reason why.

they want to avoid the problem of final counting.

they want to avoid the problem of double counting.

this is the only way it can be done.

PreviousNext

Answer 1

Economists definitely want to avoid the problem of double counting. this is because there are many goods and services which under grow the production process where raw materials and other intermediate inputs are added. If a particular product or a service is valued at every stage of production then it will be counted more than once. To negate this tendency the approach used in the computation of GDP uses only the final value of goods and services. Select the third option.