GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is an intermediate good-
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Sugar cane used in making sugar
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Sugar cane used in making jaggery
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Sugar used in making cakes
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Bread consumed by households
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Explanation:
Detailed explanation-1: -“Products that are made during a manufacturing process but that are also used in the production of other goods. Wood, steel, and sugar are all examples of intermediate goods.”
Detailed explanation-2: -The flour, however, is something else. It’s an intermediate good – a good used up in the process of making something. The value of the flour is automatically included in the price the customer paid for the cupcake. That’s why, when using expenditures to calculate GDP, spending on intermediate goods isn’t included.
There is 1 question to complete.