different between:

rn

1.intermidate goods and final goods

rn

2.stock and flow

rn

3. domestic and national product

Ans 1. Intermediate goods and final good are distinguished on the basis of following points. 

Basis of Difference

Final Goods

Intermediate Goods

Use

Final goods are those products that are ready for use by the final consumers.

Intermediate goods are those products which are not ready for final use and are used only as raw materials for further production.

Further Processing

Such goods do not require any further processing.

These goods require further processing and go through various stages of production.

Resale

These goods are not meant for resale.

Such goods are resold for further production.

Example

For example, cotton purchased by a consumer for personal consumption is a final good.

For example, cotton purchased by a textile industry for making cloth is an intermediate good.

Ans 2. Following points highlight the difference between a stock variable and a flow variable.

 

Basis of Difference

Stock Variable

Flow Variable

Meaning

A variable is said to be a stock variable, if it is measured at a particular point of time.

A variable is said to be flow if it is measured over a period of time.

Element of Time

Such variables do not have an element of time attached with them.

These variables have an element of time attached to them.

Example

For example, profits as on 31st march, 2011 is a stock variable

For example, interest earned on bank deposits for 1 year, i.e. from October 01, 2009 to September 30, 2010 is a flow variable.

 Ans 3. Basically, Domestic Product and National Product are distinguished on the basis of the Net factor Income From Abroad (NFIA). While Domestic Product includes factor income paid only to the domestic residents of the native country with the domestic territory of a country, on the other hand, National product besides including the factor income paid to the domestic residents, also includes the factor income paid to the domestic residents residing on the foreign lands. In simple words, Domestic Product excludes NFIA, whereas, National Product includes NFIA.  

Algebraically, Domestic Product = National Product NFIA**

 ⇒National Product (Factor Income earned by the domestic residents Factor Income paid to the foreign residents)

and National Product = Domestic Product + NFIA** 

 ⇒ Domestic Product + (Factor Income Earned by the domestic residents Factor Income paid to the foreign residents) 

** where, NFIA refers to the difference of factor income earned from foreign and the factor income paid to the foreigners. 

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