Question

Distinguish between intermediate products and final products.Give example

Answer 1

Answer:

An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Intermediate goods are sold beWhat is the difference between intermediate goods and final goods?

These goods are not included in the estimation of national income. Final goods: These goods are not used as raw material for the production of other goods during the accounting year.tween industries for resale or the production of other goods.

Explanation:

INTERMEDIATE PRODUCTS :

Intermediate product are the raw materials used in the production of finished goods and services .These Goods are either used for resale.  

For e.g : Cotton bought by a textile mill for making cloth is an intermediate product.

In making cake intermediate products used are cake flour, sugar, cocoa powder, butter.  

FINAL PRODUCTS :

Goods which are ready for consumption or capital formation by the final users. These Goods are neither used for resale.  

For e.g : cotton bought by consumer for their personal use is a final good.

Oil , sugar ,salt bought by consumer for final consumption.

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