Question

Out of final and intermediate goods which r inside or outside the boundary lines of production?

Answer 1

Answer!!

The boundary line of production is an imaginary line around the production sector that shows the nature of goods produced. This concept is used to differentiate between final goods and intermediate goods as intermediate goods remain within this imaginary boundary whereas final goods cross the boundary line of production.

For example, wheat produced by a farmer is sold to the mill owner for the production of flour. The mill owner sells the wheat flour to the baker who uses it to produce bread for the consumer. These are intermediate goods that are within the production boundary line. When the bread is sold to the customer for consumption, it becomes a final good and crosses the boundary line of production.