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In intermediate goods
  • a)
    Values are already added
  • b)
    Value is yet to be added
  • c)
    Value should not be added
  • d)
    Value cannot be added anymore
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
In intermediate goodsa)Values are already addedb)Value is yet to be ad...
Intermediate goods or producer goods or semi-finished products are goods , such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate goods, or make and then sell, or buy then use them.
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In intermediate goodsa)Values are already addedb)Value is yet to be ad...
Introduction:
Intermediate goods refer to the goods that are used in the production process to create final goods or services. These goods are not meant for final consumption but rather for further processing or resale. They occupy a crucial position in the production chain, as they are used to add value and transform raw materials into finished products.

Explanation:
In the context of intermediate goods, the correct answer is option 'B' - Value is yet to be added. Let's understand why this is the case:

1. Definition of Intermediate Goods:
Intermediate goods are used as inputs in the production process. They are typically purchased by businesses to be used in the production of final goods or services. These goods undergo further processing or transformation before they become part of the final product.

2. Value Addition:
The value of intermediate goods is not yet fully realized. When these goods are incorporated into the production process, value is added through various stages of transformation. For example, raw materials are processed, components are assembled, and additional labor is employed to create a finished product.

3. Role in Value Chain:
Intermediate goods act as a link between the raw materials and the final product. They enable the production process to advance and contribute to the value chain. Without intermediate goods, it would be challenging to convert raw materials into usable products efficiently.

4. Examples:
Examples of intermediate goods include raw materials like steel, plastic, or wood, semi-finished components, and parts used in the manufacturing process. These goods are further processed, combined, or assembled to create a final product that is ready for consumption or sale.

5. Value-added in Final Goods:
Once the intermediate goods have undergone the necessary processing, their value is fully realized in the final goods. The final goods are the end products that are consumed or sold to the end-users. At this stage, the value of the intermediate goods has been added to the final product.

Conclusion:
In summary, intermediate goods play a vital role in the production process by adding value and transforming raw materials into finished products. Their value is yet to be fully realized until they are processed and incorporated into the final goods. Hence, the correct answer is option 'B' - Value is yet to be added.
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Community Answer
In intermediate goodsa)Values are already addedb)Value is yet to be ad...
Intermediate goods are those good which are used in production so their value are include in final goods
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In intermediate goodsa)Values are already addedb)Value is yet to be addedc)Value should not be addedd)Value cannot be added anymoreCorrect answer is option 'B'. Can you explain this answer?
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