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What is meant by problem of double counting ? How can this problem be avoided ? |
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Answer» SOLUTION :The problem of DOUBLE counting arises when the VALUE of certain goods and services are counted more than once while estimatingNational Income by Value Added METHOD. This happenswhen the value of intermediate goods is countedin the estimationof National Income alongwith the final value of goods and services. Two methods to avoid the problem of double counting : (i) To count only the value of final products. (ii) To count only the value added which equals value of output less intermediate consumption. |
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