Question

Differentiate between intermediate goods and final goods with example.

Answer 1

Intermediate goods	Final Goods
(1) These goods get used up in producing other goods and services.	(1) These are used for final consumption or for capital formation.
(2) These are for resale	(2) These are not for resale.
(3) Value of these commodities are not (3) Value of these commodities are not	(3) Value of these commodities are included in the N.I.
(4) Ex : Coal used in factory.	(4) Ex : Coal used at home for cooking.