Question

Define intermediate consumption and explain it with an example. how is it different from final consumption?

Answer 1

These goods are sold between industries for resale or the production of other goods. One example of an intermediate good is salt, a product that is directly consumed but also used to manufacture food products. Gross domestic product (GDP) is a measurement of the market value of final goods.

Answer 2

Answer: Intermediate consumption is a national accounts concept which measures the value of the goods and services consumed as inputs by a process of production.

Example:-One example of an intermediate good is salt, a product that is directly consumed but also used to manufacture food products.

And it is different from final consumption because An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Intermediate goods—like salt—can also be finished products, since it is consumed directly by consumers and used by producers to manufacture other food products.