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Which of the following over estimates the value of nation...

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 is D

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.