GDP measures only the value of FINAL goods and services to:?
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Answer:
A In order to avoid double counting, the value of the inputs used to produce the final goods should not be included. Only the value of final goods should be added to GDP and all goods or services for intermediate consumption should be excluded. However, there is no easy way to know whether something should be regarded as final goods or intermediate goods. To overcome the problem, the value added method is employed in national income accounting.
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Other answers
A In order to avoid double counting, the value of the inputs used to produce the final goods should not be included. Only the value of final goods should be added to GDP and all goods or services for intermediate consumption should be excluded. However, there is no easy way to know whether something should be regarded as final goods or intermediate goods. To overcome the problem, the value added method is employed in national income accounting.
Econman
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