Question

distinction bw final and intermidiate good is imp why??

Answer 1

Heya......

Final goods are those goods who have crossed their boundary line of production....

Intermidiate goods are under the line of production and value must be added in these process....

SO,,,, DISTINCTION BETWEEN FINAL AND INTERMEDIATE GOODS IS IMPORTANT BECAUSE........

To avoid the problem of double counting....

If we add the value of intermidiate goods in national income then it will be double counting because value of these goods are already added in final goods...

Answer 2

Let us now look into the points of difference between the final goods and intermediate goods.

Let us now look into the points of difference between the final goods and intermediate goods....

Let us now look into the points of difference between the final goods and intermediate goods....Difference between Final Goods and Intermediate Goods.

Let us now look into the points of difference between the final goods and intermediate goods....Difference between Final Goods and Intermediate Goods.Final Goods Intermediate Goods

Let us now look into the points of difference between the final goods and intermediate goods....Difference between Final Goods and Intermediate Goods.Final Goods Intermediate GoodsFinal goods are ready to be consumed and therefore do not require any further processing Intermediate goods require further processing in order to be consumed