Double counting can be avoided by:

Question

Quizplus · Accepted Answer

Double counting can be avoided by not counting the value of intermediate goods in GDP. GDP only counts the final output produced in a country, so including intermediate goods would lead to double counting. GNP includes the value of intermediate goods produced by domestic residents regardless of where it is produced, but excludes the value of intermediate goods produced by foreigners within the country. However, the question specifically asks about avoiding double counting in GDP, so the best answer is B. The other choices either do not address double counting, or suggest including intermediate goods in some form which would lead to double counting.

Double Counting Can Be Avoided By