Practicing Success
From the following information, calculate the value of intermediate consumption. |
₹2,000 ₹6,000 ₹2,500 ₹3,500 |
₹2,500 |
The correct answer is Option 3: ₹2,500 Intermediate goods are goods and services that are used as inputs in the production process of other goods and services. They are not sold directly to consumers but are used up or transformed in the production process. Expenditure made for further processing or resale and not for final consumption will come under intermediate consumption. Here the raw materials will be processed further and hence their value is included in intermediate consumption. Imports of television and purchase of table for use at home are part of final goods to be used for consumption. |