A farmer producing cotton sells it to a spinning mill where it transforms into yarn; the yarn is, in turn, sold to a textile mill where, it transforms into cloth; the cloth is, in turn, transforms into an article of clothing which is then ready to be sold finally to the consumers for final use. Based on the above example, while calculating Domestic Income in the economy, we will only include the article of clothing and ignore cotton produced by the farmer, yarn produced by the mill and cloth produced by the textile mill, in order to avoid __________.

Question

Option 1: Depreciation

Option 2: Capital Loss

Option 3: Double Counting

Option 4: Taxes

AfterBoards · Accepted Answer

The answer is 'Double Counting'. View full solution:

CUET Economics 2026 11th May Shift 2 PYQs

Keyboard Shortcuts