difference between intermediate goods and capital goods
Answers
Explanation:
Intermediate Goods Versus Consumer and Capital Goods
Intermediate goods can be used in production, but they can also be consumer goods. How it is classified depends on who buys it. If a consumer buys a bag of sugar to use at home, it is a consumer good. But if a manufacturer purchases sugar to use during the production of another product, it becomes an intermediate good.
Capital goods, on the other hand, are assets that are used in the production of consumer goods. That means they are purchased to help in the production process. So the baker who bakes the bread in the example above will buy an oven to use in the production process. That oven is considered a capital good, which doesn't transform or change shape, unlike the wheat.
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Answer:
1. intermediate goods refers to those goods which are used either for resale or for further production in the same year
where as
2. capital goods refers to those goods which are use to produce other goods and services