Social Science (087) — CBSE Class 10 board question

Only final goods and services are counted in GDP to avoid double counting. Intermediate goods (like wheat and flour) are used up in producing final goods, and their value is already included in the value of the final good (like biscuits). Counting them separately would mean counting the same value multiple times.

Source: Comparing the Three Sectors, Chapter 2

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• The examiner wants two things: (1) the term double counting and (2) a brief example or explanation showing why intermediate goods are excluded.
• The biscuit/wheat/flour example from the textbook is the best illustration — use it if you have space (3-mark version), but for 2 marks a one-line example reference is enough.
• Key terms to use: final goods, intermediate goods, double counting.
• Do not define GDP at length — the question asks why, so focus on the reason (double counting), not the definition.