Skip to content
  • 0 Votes
    18 Posts
    3k Views
    cyberianC
    @zareen said in ECO401 Quiz 3 Solution and Discussion: Overestimation of national product in national income calculations is known as: Double counting effect. This occurs when the value of intermediate goods (materials used to produce a final product) is added to the national income multiple times at different stages of production. To avoid this overestimation, economists use two main methods: Final Product Method: Only counting the value of the finished good sold to the end consumer. Value Added Method: Adding only the specific value created at each individual stage of production.
Reputation Earning
How to Build a $1,000/Month World CUP LIVE Matches Live Cricket Streaming
Ads
File Sharing
Stats

1

Online

3.0k

Users

2.8k

Topics

8.5k

Posts
Popular Tags
Online User
| |