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Answer the Following Question: How Do We Count Various Goods and Services for Calculating Gross Domestic Product (G.D.P.) of a Country? Explain with Example. - Social Science

Answer in Brief

Answer the following question:
How do we count various goods and services for calculating Gross Domestic Product (G.D.P.) of a country? Explain with example.

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Solution

The various goods and services are counted on the basis of the value of each good or services, not on the basis of actual numbers.

  • The value here is referred to the value of final goods and services not the value of intermediate goods.
  • It is understood that the value of final goods already includes the value of all intermediate goods that are used in making the final goods.
  • The total production of each sector is calculated by adding the value of all final goods and services of the sector in a year.
  • The total production of all three sectors within a country is known as the Gross domestic product of the country.
Concept: Concept of Growth of National Income
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