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| 1. |
What is the importance of distinction between intermediate and final goods ? |
| Answer» Solution :The difference between intermediate and FINAL GOODS is impotant to avoid double counting. If value on intermediate goods is taken then it will cause the problem of double counting. When intermediate goods are used as raw MATERIALS in the PRODUCTION of final goods the value of intermediate goods gets automatically included in the value of final goods.Therefore value of only final goods is taken into estimation of `NI`. | |