ECON 1010 Study Guide - Net Domestic Product, Final Good, Intermediate Good
29 Mar 2014
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Document Summary
Market value of the final goods and services produced within a country a given time period. Total income and total expenditure is also measured (i) market value. The market value of the product is examined ie. if price of an apple is 10 cents than the price of 5 apples is . (ii) final goods and services. The final good (or service) is an item that is bough by its final user. Intermediate good (or service): item that is produced by one firm bought by another firm and used as a component of a final good or service. good. Ford truck is final good, but the firestone tire on the truck is an intermediate. Dell computer is a final good, but an intel pentium chip is an intermediate good. Only final goods are taken into account because we added value of intermediate goods and services produced to the value of final goods & services than we will be double counting.
