Question

what are the final goods and intermediate goods how do they help in calculating Gross Domestic Product that is GDP

Answer 1

• Final goods are the goods meant for final consumption.such products need not be processed any further and can be used as they are.For example: cake biscut etc.
• intermediate goods are unfinished goods that are not used for final consumption.such goods are used as raw materials in production of final goods.For example:flour etc.
• only final goods are taken while calculating the GDP.GDP denotes the value of all final goods produced in a country during a specific year.Higher the GDP,bigger is the size of economy.

Answer 2

Answer:

Explanation:

Final goods are the goods meant for final consumption.such products need not be processed any further and can be used as they are.For example: cake biscut etc.

intermediate goods are unfinished goods that are not used for final consumption.such goods are used as raw materials in production of final goods.For example:flour etc.

only final goods are taken while calculating the GDP.GDP denotes the value of all final goods produced in a country during a specific year.Higher the GDP,bigger is the size of economy