Question

“Saksham owns a manufacturing facility where microchips are utilized in the production of electronic devices, including computers and smartphones.”
From the above text, identify whether the given statement refers to an intermediate goods or final goods. Give valid reason in support of your answer.

Hint:

Intermediate goods are used in further production, while final goods are consumed directly.
NVA\textsubscript{FC = Sales + Change in stock – Intermediate consumption – Depreciation + Subsidies – Indirect taxes

Answer 1

The statement references intermediate goods, as the microchips are inputs for manufacturing other products, such as computers and smartphones, and are not for direct end-user purchase. Intermediate goods are defined as those utilized in the creation of other goods and services.