Asked by Elizabeth Hubbard on May 06, 2024
Verified
The value added method to measure GDP does not avoid double counting.
Value Added Method
An approach to calculating GDP that sums the values added at each stage of production, reflecting the contribution of labor and capital to the production process.
Double Counting
The error in accounting or estimation when the same item or transaction is counted more than once, leading to inaccuracies in economic measurements.
- Comprehend the principles and importance of utilizing the value added method in calculating GDP to prevent the duplication of figures.
Verified Answer
IK
Iroka kanonMay 07, 2024
Final Answer :
False
Explanation :
The value added method to measure GDP avoids double counting by only considering the value added at each stage of production, not the total value of the product at each stage.
Learning Objectives
- Comprehend the principles and importance of utilizing the value added method in calculating GDP to prevent the duplication of figures.