Single Answer MCQ
Q-00015907
Why are only final goods included in computing national income?
1
Intermediate goods are harder to assess
2
Intermediate goods are sold at lower prices
3
Final goods represent total consumption
4
Final goods include the value of intermediate goods
Answer and Solution
Answer
D. Final goods include the value of intermediate goods
Solution:
Only final goods are included in calculating national income because their value encapsulates all intermediate goods' values used in production, avoiding double counting.
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