Why final goods only counts in national income?
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Intermediate Goods - All the goods and services which are produced further to make final product is called intermediate goods.
eg - sugarcane ,iron flour....
Final Goods -All the goods and services which are used or consumed are called final goods.
eg - automobile ,cookies ,bag ,book
As ,the value of final goods and services already include the value of intermediate goods that are used up in its production , hence only final goods counts in national income.
eg - sugarcane ,iron flour....
Final Goods -All the goods and services which are used or consumed are called final goods.
eg - automobile ,cookies ,bag ,book
As ,the value of final goods and services already include the value of intermediate goods that are used up in its production , hence only final goods counts in national income.
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