Economics · National Income
Why is it important to distinguish between final and intermediate goods and services in national income accounting?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It helps to determine the overall quality of goods and services produced.
- 2It provides insight into the distribution of income among different sectors.
- 3It avoids double counting to ensure accurate measurement of economic output.✓
- 4It helps track changes in consumer preferences and market demand.
Correct answer
It avoids double counting to ensure accurate measurement of economic output.
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