Examples of final goods are consumer goods like car, fruits, vegetables etc. Goods cannot be absolutely classified as intermediate goods and final goods. Whether a good is a final good or an intermediate good depends upon its use. For example, that part of sugar which is used in the production of biscuit is known as intermediate good. On the other hand, that part of sugar which is directly consumed by consumers is called final good.
Therefore, it cannot be said in absolute term as to whether a commodity is an intermediate good or a final good; it is a relative phenomenon. Intermediate goods are not included in the calculation of national income; only final goods are included: Inclusion of intermediate goods in the estimation of national income would lead to the problem of double counting.
For example, if fan and blades both are included in the national income, then the value of blades would be doubly counted. The distinction between intermediate goods and final goods is made on the basis of the use of product and not on the basis of product itself.
A commodity can be an intermediate good as well as a final good, depending upon its nature of use. However, if it is used by the consumers, then it becomes a final good. However, it becomes a final good when it is used by the households. So, it must be noted that distinction is made on the basis of end use. If end use of a good is consumption or investment, then it is a final good. However, if the good is used for resale or further production in the same year , then it is an intermediate good.
Only final goods are included in national income. The intermediate goods are not included in the national income as they are already included in the final goods. If their value is added again, it will lead to double counting. Out of wheat and flour, only flour final good is included in National Income as value of flour already includes the value of wheat intermediate good.
It should always be remembered that intermediate goods are used up in the same year. If they remain for more than one year, then they are treated as final goods. Only 7 tonnes coal was used up in Impulse convenience consumer goods do not belong to the priority list of the consumer. They are purchased without any prior planning, just on the basis of the impulse: Shopping consumer goods are the goods which take lot of time and proper planning before making purchase decision; in this case consumer does a lot of selection and comparison based on various parameters such as cost, brand, style, comfort etc.
Shopping goods are costlier than convenience goods and are durable in nature. Consumer goods companies usually try to set up their shops and show rooms in active shopping area to attract customer attention and their main focus is to do lots of advertising and promotion so that to attract more customer. Specialty goods are unique in nature; these are unusual and luxurious items available in the market. Specialty goods are mostly purchased by the upper class of the society as they are expensive in nature and difficult to be afforded by middle or lower-class people.
Companies advertise their goods targeting the upper class. These goods do not fall under the category of necessity; rather they are purchased on the basis personal preference or desire.
Brand name, uniqueness, and special features of an item are major attributes which attract customers and make them buy such products. Unsought goods neither belong to the necessity group of consumer goods list nor to specialty goods.
They are always available in the market but are purchased by very few consumers, either based on their interest or their need for some specific reasons. The general public does not purchase such goods often. Examples include snowshoes , fire extinguishers , flood insurance , etc.
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A commodity can be an intermediate good as well as a final good, depending upon its nature of use. For Example: (i) Sugar is an intermediate good when it .
An intermediate good is a good or service used in the eventual production of a final good or finished product.
Whether a good is a final good or an intermediate good depends upon its use. For example, that part of sugar which is used in the production of biscuit is known as intermediate good. On the other hand, that part of sugar which is directly consumed by consumers is called final good. An automobile engine is an example of an intermediate good, and is used in the production of the final good, the assembled automobile. Intermediate goods or producer goods or semi-finished products are goods, such as partly finished goods, used as inputs in the production of other goods including final goods.
Intermediate goods are the goods which are used for producing a particular good and final goods are the goods which are ready for sale in the market. For example, a microwave oven or a bicycle that is sold to a consumer is a final good or consumer good, but the components that are sold to be used in those goods are intermediate goods. For example, textiles or transistors can be .