Question

Why are intermediate goods not counted separately with final goods?

Options

• Final goods do not use manpower or capital stock

• The value of final goods already includes the value of intermediate goods used in their production

• Intermediate goods are never produced for sale

• Intermediate goods have no monetary value

Answer 1

The value of final goods already includes the value of the intermediate goods used to produce them. Counting both separately would count the same value more than once.