Which of the following is correct regarding the National Income? I. Intermediate goods are not included in the calculation of national income. II. Final goods are included in the calculation of national income.
- A.Only II
- B.Neither I nor II
- C.Only I
- D.Both I and II
Show answer
Both statements state the same rule from opposite sides: national income is the value of final goods and services, and the value of intermediate goods is excluded so that the same output is not counted at every stage of production.
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