Question 48
National IncomeIn calculating the national income of a country x, the cost of both raw materials and the finished products were included. This is a case of
- A.double counting
- B.price fluctuations
- C.price differentiation
- D.price discrimination.
Show the answer and explanation
Answer: A (double counting)
Explanation
Raw materials are already part of the value of the finished goods, so counting both counts them twice.