search
arrow-left Previous
Next arrow-right
Q: Why it is important to distinguish between final and intermediate goods/services in national income accounting?
  • A. Provides insight into the distribution of income among different sectors.
  • B. It helps track changes in consumer preferences and market demand.
  • C. It helps in more accurate measurement of economic growth and productivity.
  • D. It help in detrminng the overall quality of goods and services produced.
Correct Answer: Option C - It is important to distinguish between final and intermediate goods/services in national income accounting because it helps in more accurate measurement of economic growth and productivity.
C. It is important to distinguish between final and intermediate goods/services in national income accounting because it helps in more accurate measurement of economic growth and productivity.

Explanations:

It is important to distinguish between final and intermediate goods/services in national income accounting because it helps in more accurate measurement of economic growth and productivity.