why we add the cost of final good ? why it is important ?
Answers
Explanation:
Only final goods and services are counted, to avoid multiple counting, since their prices covers the cost of all intermediate products and services that were used to produce the final output. Another way to calculate GDP is to measure the value added to each product or service at each stage of its production.
Answer:
final goods or consumer goods is a commodity that is used by the consumer to satisfy current wants or needs, unlike intermediate goods which is utilized to produce other goods. A microwave oven or a bicycle is a final good, whereas the parts purchased to manufacture it are intermediate goods.
final goods or consumer goods is a commodity that is used by the consumer to satisfy current wants or needs, unlike intermediate goods which is utilized to produce other goods. A microwave oven or a bicycle is a final good, whereas the parts purchased to manufacture it are intermediate goods.When used in measures of national income and output, the term "final goods" includes only new goods. For example, gross domestic product (GDP) excludes items counted in an earlier year to prevent double counting based on resale of items. In that context, the economic definition of goods also includes what are commonly known as services.
final goods or consumer goods is a commodity that is used by the consumer to satisfy current wants or needs, unlike intermediate goods which is utilized to produce other goods. A microwave oven or a bicycle is a final good, whereas the parts purchased to manufacture it are intermediate goods.When used in measures of national income and output, the term "final goods" includes only new goods. For example, gross domestic product (GDP) excludes items counted in an earlier year to prevent double counting based on resale of items. In that context, the economic definition of goods also includes what are commonly known as services.Manufactured goods are goods that have been processed in any way. They are distinct from raw materials but include both intermediate goods and final goods.
Explanation:
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