Question

Distinguish between intermediate product and final product. Give suitable examples in support of your answer.

Answer 1

Intermediate Product	Final Product
These products may be used as raw material for the production of other goods during an accounting year.	These goods are not used as raw material for the production of other goods during an accounting year.
These products may be resold by the firms for profit.	These products are not resold by the firms for profit.
Value is yet to be added to these good.	Value is not to be added to these good.
These goods are not included in the estimation of national income.	These goods are included in the estimation of national income.
Example: Wheat flour used to make the bread is an intermediate good.	Example: Bread used by consumers.