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SSC MTS 2023 PYQ — Question 87

SSC MTS - 04 May 2023 - Shift 2 • General Awareness • Q87

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In the product method for measurement of national income, we need to deduct the value of intermedlate goods to __________.

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Correct answer: C

Explanation

The correct answer is 3 i.e.avoid double counting

  1. To avoid double counting, the value of intermediary items must be subtracted from the total when using the product method to calculate national income.
  2. This approach focuses on figuring out the total value of products and services generated domestically.
  3. To make sure that only the value added at each stage of manufacturing is counted by eliminating intermediate items, which are needed to produce final goods.
  4. By not including the same commodities more than once, the national revenue estimates are kept from being inflated.