Question

Correct the following statement and give reason:

“Intermediate goods are included in the estimation of National

Income.”

Please give a detailed answer. ​

Answer 1

The correct statement is "Intermediate goods are not included in the estimation of National Income"

Explanation:

• These are not final good but are near to being final hence they need further processing.

• This is done by a firm to enhance another firm's production.

• These also not included in the GDP of a country.

• Final goods are those which do not need any processing and are ready to be used.