How do we count the various goods and services and know the total production in each “sector”?

Economist suggests that the’ ‘values of goods and services should be used rather than adding up the actual numbers. The value of goods and services in the three sectors are calculated and then a added up. Not every good(or service), that is produced and sold, needs to be counted. It makes sense, only to include final goods and services. Intermediate goods are used up in producing final goods and services. The value of final goods already includes the value of all the intermediate goods that are used in making the final goods and services. So the value of final goods and services produced in each sector during a particular year, provides the total production of the sector for that year. And the sum of production in three sectors gives us the

‘Gross Domestic Product.”

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