question_answer

  What precaution should be taken while calculating the value of the goods produced and why?

Answer:

  While calculating the value of the goods produced is, that we should only count the value of the final goods produced. We should not count or add the value of the intermediate goods, because the value of the final goods already includes the value of the intermediate goods which are used in making the final goods. For example, the value of 50 for a packet of biscuits (final good) already includes the value of flour, sugar and other intermediate goods in it.                                                                                                                                              (3)