Concept:Double counting is an error in national income accounting where the same productive contribution is valued more than once.
Explanation:Final goods already include the value of all intermediate goods used in their production.
If intermediate goods are also counted separately along with these final goods, their value gets counted twice.
For example, when bread is sold, its price includes the value of wheat and flour used to make it.
Adding the value of wheat, flour, and bread together would overstate the national income.
This faulty practice is known as double counting.
Therefore, double counting specifically occurs when intermediate goods are counted together with the final goods.
Answer:B. Intermediate goods are counted with the final goods.