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Distinguish between final goods and intermediate goods |
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Answer» Final goods\xa0(i) The goods which are used either for final consumption or for capital formation.\xa0(ii) The value of final I goods is included in the national income.\xa0(iii) Example, television, bread or bakery products, etc. Intermediate goods\xa0(i) The goods which are used up in producing the final goods and services.\xa0(ii) The value of intermediate goods is not included in the national income.\xa0(iii) Example, flour, cotton, etc. Intermediate goods Final goods\xa0Intermediate goods refer to those goods which are used either for resale or for further production in the same year. Final goods refer to those goods which used either for consumption or for investment.\xa0They are not ready for use in the sense some value has to be added to the intermediate goods.\xa0They are ready for use in the sense that no value has to be added.They are still within the production boundary.They are ready for use in the sense that no value has to be added.For example, coal used in factory for further production.For example, milk purchased by household for consumption. \t\xa0Intermediate goods\xa0\xa0Final goods\xa0Intermediate goods refer to those goods which are used either for resale or for further production in the same year. \xa0Final goods refer to those goods which used either for consumption or for investment.\xa0They are not ready for use in the sense some value has to be added to the intermediate goods.\xa0They are ready for use in the sense that no value has to be added.They are still within the production boundary.They are ready for use in the sense that no value has to be added.For example, coal used in factory for further production.For example, milk purchased by household for consumption.\xa0\t Final goods\xa0(i) The goods which are used either for final consumption or for capital formation.\xa0(ii) The value of final I goods is included in the national income.\xa0(iii) Example, television, bread or bakery products, etc.\xa0\xa0Intermediate goods\xa0(i) The goods which are used up in producing the final goods and services.\xa0(ii) The value of intermediate goods is not included in the national income.\xa0(iii) Example, flour, cotton, etc.\xa0 |
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