Factor Services (Land, Labour, Capital and Enterprise) Consumption Expenditure (On and services) Purchase of Goods and Services consumption goods and Capital goods. Differentiate between Consumer or consumption goods Capital goods 1. These are directly used by ultimate 1. are fixed assets used by the consumer household for satisfaction of producers in the production process. wants. 2. These are final goods 2. These are final goods. 3. They are not used in production by 3. They help in production of other goods. producer. 4. They may be changed during use by 4. They do not change during production consumer like tea leaves are used to make process. tea. 5.eg: Durable goods- car, washing machine 5. eg: machines , Plants and equipment used in production process. Final goods and Intermediate Goods? what is the difference between Final goods Intermediate goods 1. These are ready for final use These are not ready for use; they are by consumer for consumption or for resale or used for further By producer for investment. production. 2.These are:- 2. These are purchased by one firm (a)Consumer goods used for satisfaction of from another for following purpose:- wants. They may change during use. (a) Resale during the year (b) Capital goods which help in production (b) Use as raw material in production process. Thy do not transform during use,; process. So they may change during production process 3. Once sold pass out of production 3. These are inside the production boundary. boundary. 4. These are included in national income 4. These are not included in national income. Stocks and Flows variables. Differentiate between
Factor Services (Land, Labour, Capital and Enterprise) Consumption Expenditure (On and services) Purchase of Goods and Services Differentiate between consumption goods and Capital goods. Consumer or consumption goods Capital goods 1. These are directly used by ultimate consumer household for satisfaction of wants. 1. are fixed assets used by the producers in the production process. 2. These are final goods 2. These are final goods. 3. They are not used in production by producer. 3. They help in production of other goods. 4. They may be changed during use by consumer like tea leaves are used to make tea. 4. They do not change during production process. 5.eg: Durable goods- car, washing machine 5. eg: machines , Plants and equipment used in production process. what is the difference between Final goods and Intermediate Goods? Final goods Intermediate goods 1. These are ready for final use by consumer for consumption or By producer for investment. These are not ready for use; they are for resale or used for further production. 2.These are:- (a)Consumer goods used for satisfaction of wants. They may change during use. (b) Capital goods which help in production process. Thy do not transform during use,; 2. These are purchased by one firm from another for following purpose:- (a) Resale during the year (b) Use as raw material in production process. So they may change during production process 3. Once sold pass out of production boundary. 3. These are inside the production boundary. 4. These are included in national income 4. These are not included in national income. Differentiate between Stocks and Flows variables.
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