Question

Distinguish between intermediate products and final products. Give examples.

Answer 1

$\begin{array}{cc}\text{Intermediate Products}& \text{Final Products}\\ \text{(i) Goods used in the production process}& \text{(i) Goods purchased not for the purpose}\\ \text{during an accounting year are known as}& \text{of being used in the production process}\\ \text{intermediate goods.}& \text{but for final consumption and investment}\\ & \text{are called final products.}\\ \text{(ii) These goods are not included in the}& \text{(ii) These goods are included in the}\\ \text{estimation of national income.}& \text{estimation of national income.}\\ \text{(iii) These goods are still within the production}& \text{(iii) These goods have}\\ \text{boundary line.}& \text{crossed the boundary consumption or}\\ & \text{investment.}\end{array}$