Concept:To avoid double counting in the expenditure approach, only the value of final goods and services should be included.
Explanation:The expenditure approach calculates national income by adding up total spending on goods and services in the economy.
If spending on intermediate goods is also included, the same good or service may be counted more than once at different stages of production.
This is known as double counting, and it overstates the actual national income.
To overcome this problem, the expenditure approach must consider only spending on final goods.
Final goods are those that are sold to the ultimate consumer and are not used as inputs for further production.
Intermediate goods, on the other hand, are used to produce other goods and should be excluded from expenditure estimates.
By counting only final goods, each product is measured only once, giving a correct and accurate value of national income.
Hence, the correct way to prevent double counting is to include only final spending.
Answer:D. Only spending on final goods are considered.