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Chapter 2 : National Income Accounting - 2
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Consumption goods,capital goods and consumer durable explained

Rahul Shakya
Made 500+ Free Public Administration Lessons, University Gold Medalist ~ Mech. Engg, 92.8% in 12th, Perfect Presence Awardee LET'S CRACK IT🎯

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  1. Macroeconomics Class 12th Economics NCERT Summary BY RAHUL SHAKYA unacademy Macroeconomics


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  4. Final Goods & Intermediate Goods Final Goods - Passes out of Active Economic Flow Intermediate Goods > Act as an Input to Final Goods Note: It is not the nature of the good but the Economic nature of use that decides whether good is Final or Intermediate


  5. Difference between Consumption Goods and Capital Goods > Consumption Goods Capital Goods Those goods that are consumed when purchased by ultimate consumer Those goods that act as crucial backbone f Production Process, in aiding & enabling the production Non-Durable Durable Undergo wear and tear Preservation, Maintenance and Repairing required


  6. Concept of Consumer Durables -> Consumption Goods Capital Goods Those goods that are consumed when purchased crucial backbone of by ultimate consumer Consumer Durable Those goods that act as Those goods that are consumed when purchased by ultimate consumer Production Process, in aiding & enabling the production Non-Durable Durable Durable Undergo wear and tear Preservation, Maintenance and Repairing required Undergo wear and tear Preservation, Maintenance and Repairing required


  7. Common Measuring Rod In order to get the quantitative assessment- a measure of the total final goods and services produced in the economy we need a common measuring rod Money > Common Measuring Rod Since each of the commodities is produced for sale, the sum total of the monetary value of these diverse commodities gives us a measure of final output. .Why final goods only ?? To prevent double counting.