A. intermediate goods are counted twice
B. intermediate goods are counted with the final goods
C. final goods are counted more than twice
D. different people count the products
Correct Answer: Option B
B. intermediate goods are counted with the final goods
Explanation
Double counting is an error caused as a result of the illogical calculation. This term is used in economics to refer to the faulty practice of counting the value of a nation’s goods more than once. Since goods are produced in stages, through specialized channels of production, many intermediate goods are used to produce a final good. If the values of each of these intermediate goods is added together, without subtracting expenditures incurred during the production process, the error of double counting will be committed.
