To know the total production in any one of the three sectors, we need to count the goods and services which involve two problems:
(i) There are too many goods and services produced so counting them is difficult.
(ii) Sometimes Intermediate goods are also counted. It is called double counting. It will not give the actual figures of goods and services produced.
(iii) These problems can be overcome by adding the values of final goods and services produced rather than the actual numbers. For example, if 10,000 kg of sugar is sold at ™ 8 per kg, then value of sugar will be ™ 80,000.
