question_answer

Distinguish between final goods and intermediate goods, Give an example of each.

Answer:

Final Goods

(a) These are those goods which are either used for consumption or for investment purpose.

(b) They are included in both national and domestic income.

(c) For e.g., milk purchased by households.

Intermediate Goods

(a) These goods are those goods which are used either for resale or for further production in the same year.

(b) They are neither included in national income nor in domestic income.

(c) For Eg. milk used in dairy for resale.