how do we count the various goods and services and know the total production in each sector ?

1) the value of final goods and services is calculated and then added up to know the total production in each sector.

2) only the value of final goods is calculated because the value of final goods includes the value of all intermediategoods that are used in making the finalgoods.for example:-

the value of table (suppose rupees 2000) includes the value of wood (rupees 1000) and polish (rupees 500).so the value ofwood and polish is not counted seperately.

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Remember,there is one precations one has to take. Not every good that is produced and sold needs to be counted. It makes senses only to include the final goods and services. For instance, afarmer who sells wheat to a flour mill for Rs 8 per kg. The mill grinds the wheat and sells the flour to a biscuit company for Rs 10 per kg. The biscuit company uses flour, oil , sugar to make four packets of biscuits .It sells biscuit in the market to the consumers for Rs60. Biscuits are the final goods.Which rich the consumers
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1. the value of final goods and services is calculated and then added up to know the total production in each sector.

2. only the value of final goods is calculated because the value of final goods includes the value of all intermediategoods that are used in making the finalgoods.for example:-the value of table (suppose rupees 2000) includes the value of wood (rupees 1000) and polish (rupees 500).so the value ofwood and polish is not counted seperately.
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The value of goods and services is calculated by adding the total value of the materials used . Like for example .....u purchase a mat of ₹1000 ....the cloth might have cost 500 and the knitting and designs would have cost ₹500 resulting in the total amount of ₹ 1000 hence its the value of all the materials utilised !
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- The value of the goods are calculated rather than the numbers of the individual goods.

-The value calculated is of the final products and services which automatically includes the values of the intermediate goods and services.

-The total production is then acquired by adding the total value of the final value of the goods and services in a given sector. This will give us the GDP in this sector.
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a.  It is not feasible  to count every good and services produced  in actual numbers.
b. Rather, we calculate  value of  the final goods and services produced in a year, in each sector.
c.. ​The value of final goods also includes the value of all the intermediate goods that have been used in making the final good.
d.The value of final goods and services produced in each sector in  a year provides for total production in that sector.
e. The sum of production in all three sectors thus gives us Gross Domestic Product
f.  Final goods are used for calculating GDP, these are goods which are used for direct consumption by the consumers.


Hope it helps....
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