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.

---

Definitions:

Usefulness

The quality of being practical and beneficial, especially in decision-making or assessing value.

Prepaid Expense

Expenses paid in advance for goods or services, which are recorded as an asset until the service is consumed or the good is used.

Insurance Policy

A contract between the insurer and the policyholder specifying the terms under which the insurer agrees to compensate the policyholder for loss.

One Year

A period of time consisting of 12 months or 365 days, used as a standard measurement of time for financial, contractual, and planning purposes.