To avoid multiple counting in national income accounts,
A) only ﬁnal goods and services should be counted.
B) intermediate goods and services should be counted.
C) both ﬁnal and intermediate goods and services should be counted.
D) primary, intermediate, and ﬁnal goods and services should be counted.

Question

Quizplus · Accepted Answer

Only final goods and services should be counted in national income accounts to avoid multiple counting. Intermediate goods and services are already included in the value of the final goods and services they contribute to, so counting them separately would result in double counting. Similarly, counting primary goods and services (like raw materials or labor) would result in multiple counting as their value is already included in the value of the final goods and services they contribute to. Therefore, the best choice is to only count the value of final goods and services to avoid any double counting.

To Avoid Multiple Counting in National Income Accounts