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What is the rationale for not taking int...

What is the rationale for not taking into account value of intermediate goods in the measure of GDP ?

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To avoid the problem of double counting.
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SANDEEP GARG-MEASUREMENT OF NATIONAL INCOME-Very Short Answer Type Questions
  1. Mention the three methods of measuring national income.

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  2. What is the value added method of measuring national income ?

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  3. When is value of output equal to value added ?

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  4. What aggregate do we get, when we add up the gross value added of all ...

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  5. What is the rationale for not taking into account value of intermediat...

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  6. How can the problem of double counting be avoided ?

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  7. Give the meaning of operating surplus.

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  8. Income from property, rent and entrepreneurial income are respectively...

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  9. What is meant by mixed income ?

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  10. If compensation of employees in a firm constitues 55% of net value add...

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  11. Why do export form a part of national income ?

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  12. Why are imports not included in the estimation of national income ?

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  13. Under what circumstances, net export is negative ?

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  14. Will the commission given to a broker for sale of an old house be incl...

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  15. Why leisure is not included in GNP ?

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  16. Why is transfer income not included in national income ?

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  17. What is nominal gross domestic product ?

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  18. What is real gross domestic product ?

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  19. Give one example of externality which reduces welfare of the people. ...

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  20. Define intermediate consumption.

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