Question

May the same good be final or intermediate? Explain.

Answer 1

Answer:

Yes, a good can be both final as well as intermediate.

For example a dairy farm dealing with the sale of milk and dairy products. For him milk can be the final product whereas for a sweet shop owner milk will be the medium to make sweets i.e., for him milk will be the intermediate product to make sweets (final product).

Answer 2

Final goods refer to those goods which are used either for consumption or for investment. Intermediate goods refer to those goods which are used either for resale or for further production in the same year. ... They are not ready for use, i.e. some value has to be added to the intermediate goods.