Consider the following statements regarding the problem of double counting in national income accounting: 1. Double counting occurs when the value of intermediate goods is included in the estimation of national income. 2. The problem of double counting can be avoided by using either the Final Product Method or the Value-Added Method. 3. Under the Value-Added Method, intermediate consumption is deducted from the value of output at each stage of production. Which of the statements given above are correct?

Options:

• A: 1 and 2 only
• B: 2 and 3 only
• C: 1 and 3 only
• D: 1, 2 and 3

Related Practice Questions:

• Let $S_1$ and $S_2$ be two disjoint, non-empty convex sets in $\mathbb{R}^n$. Under which of the following conditions is there guaranteed to exist a hyperplane that strictly separates $S_1$ and $S_2$?
• Let the primal linear programming problem be: Maximize $Z = c^T x$ subject to $Ax \le b, x \ge 0$. If this primal problem has an unbounded optimal objective value, then which of the following statements is always true regarding its dual problem?
• Let $S = \{(x, y) \in \mathbb{R}^2 \mid x^2 + y^2 \le 9\}$ be a convex set in $\mathbb{R}^2$. The set of all extreme points of $S$ is given by:
• In a linear programming problem with $3$ independent equality constraints and $5$ variables (including slack/surplus variables), what is the maximum possible number of basic solutions?