To avoid double counting when calculating gross domestic product (GDP),it is best to count
A) the value of goods and services produced at every stage of production.
B) the value added at each stage of production.
C) used goods.
D) stocks and bonds.
E) all goods and services purchased by consumers,firms,and the government.

Question

Quizplus · Accepted Answer

In order to avoid double counting, it is best to count only the value added at each stage of production. This means that in calculating GDP, we should only count the value that each producer adds to a good or service. For example, if a farmer grows wheat that is sold to a baker, we should only count the value that the baker adds when turning the wheat into bread. This way, we avoid counting the value of the wheat twice in the final GDP calculation.

To Avoid Double Counting When Calculating Gross Domestic Product (GDP),it