Intermediate goods and final goods

Intermediate goods and final goods 

(1) Intermediate goods:- Those goods which are used for further production or for sale in the future.

# Example:- Wheat purchased by a restaurant .

Features of intermediate goods:-

1. It is not include in National income.
2. It is not consumed by customers.
3. It can be resale.
4. It remains within the production boundaries.

# production boundaries:- Imaginary line drawn around a production sector of a economy.

(2) Final goods:- These are those goods which are used for final consumption, not for resale.

# Example :- Bread and Butter used by a consumer.

Fearures of final goods:-

1. The value of this is include in national income.
2. This are consumed by the consumer.
3. It is remain under the production boundaries.