Which of the following over estimates the value of national income?
ECONOMICS
WAEC 2010
Which of the following over estimates the value of national income?
- A. incomplete statistical data
- B. Wrong timing of computation
- C. changes in price of goods within the year
- D. double counting
Correct Answer: D. double counting
Explanation
In national income, double counting happens when certain items are counted more than once resulting in over-estimation of national product to the extent of the value of intermediate goods included. This is called the problem of double counting which means counting value of the same commodity more than once.
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