Economics · National Income Accounting
Consider the following statements regarding the 'Value Added Method' and the problem of double counting: Statement A: To avoid double counting, one must either use the 'Final Product Method' or the 'Value Added Method', where only the value added at each stage of production is summed. Statement B: Intermediate goods are those goods which are used for further production or for resale in the same year, and their value is already included in the value of the final good. Statement C: A car purchased by a taxi driver for his business is considered an intermediate good because it is used to produce transportation services. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct
- 2Statements A and C are correct
- 3Statements B and C are correct
- 4Statements A and B are correct✓
Correct answer
Statements A and B are correct
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