Business Environment by Pearson

National Income | 173

2. For calculating GNP accurately, all G&S produced in any given year must be counted

once, but not more than once. Most of the goods go through a series of production stages

before reaching a market. As a result, parts or components of many goods are bought and

sold many times. Hence, to avoid counting several times the parts of goods that are sold

and resold, GNP only includes the market value of  nal goods and ignores transactions

involving intermediate goods.

What do we mean by “ nal goods”? Final goods are those goods, which are being purchased for  nal

use and not for resale or further processing. Intermedia ...