Question

the value of final goods already includes the value of all the intermediate goods that are used in making the final goods. True/ False​

Answer 1

Answer:

True

Explanation:

With each step in manufacturing, value is added to the goods. For example, in a biscuit factory, the biscuits are made using flour, sugar, milk etc. Since the final product is a combination of these intermediate goods, the cost of the biscuits includes the cost of the flour, sugar and milk. Even, in the manufacturing of clothes, value is constantly added as the manufacturing stage moves from fiber to yarn to fabric, cloth and finally garments.