Double Counting Can Be Avoided By

question 129

Multiple Choice

Double counting can be avoided by:

• A) including the value of intermediate goods in the GNP but not in the GDP.
• B) not counting the value of intermediate goods in GDP.
• C) including the value of intermediate goods in the production year but not in the selling year of those goods.
• D) including the value of intermediate goods in the current year.

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Definitions:

Supply and Demand

A fundamental economic model describing the interaction between the availability of a product and the desire for that product by consumers.

Overstocking

The situation where a business holds more inventory than is demanded by the market, leading to unnecessary storage costs and potential wastage.

Understocking

The situation in which inventory levels are too low, leading to stockouts and potentially missed sales opportunities.

Product Availability

The extent to which goods or services can be purchased from a particular company or market at any given time.