The problem of Double Counting can be avoided by:
The problem of Double Counting can be avoided by:
(a) Counting only value-added
(b) Counting only value of Final Output
(c) Not counting value of intermediate products
(d) All of the above
Anurag Pathak Changed status to publish December 14, 2023
Ans – (d)
The double counting can be avoided in two ways.
i) only counting the value of the Final Output
ii) Counting only value-added
it also means not counting the value of intermediate products.
For Example:-
The farmer produces goods and sells to the dealer for ₹ 2,000
The dealer sells it to the retailer for ₹ 2,500
The retailer sells it to the consumer for ₹ 2,800
As per the counting on the value of final goods:
Value added is = the cost of the consumer = ₹ 2,800
As per the counting on the value added of all
Value added by the farmer = ₹ 2,000
Value added by dealer = value of output – value of input = ₹ 2,500 = ₹ 2,000 = ₹ 500
Value added by retailer = Value of output – Value of input = ₹ 2,800 = ₹ 2,500 = ₹ 300
Total value added is = Value added by farmer + Value added by dealer + Value added by retailer
Total Value added is = ₹ 2,000 + ₹ 500 + ₹ 300 = ₹ 2,800
Anurag Pathak Changed status to publish December 14, 2023
