How do we count various goods and services and know the total production in each sector?
Dear student,
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.
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.