Essay in very simple language with the boundaries of different words here. Here you can find Essay on The Nature of Products and Services Produced in English language for 5, 6, 7, 8, 9, 10, 11, 12 and banking or other competitive exams students in 650 words.
In one country, different types of goods and services are produced. These items are physical goods, non-physical goods, and consumer goods and manufactured goods. Such items can be non-durable, semi-durable and durable.
From the point of view of national income accounting, objects are divided into two categories - intermediate goods and final goods. All the goods, which are used for the production of other items, are intermediate goods. Raw materials and semi-finished goods fall under this category. The final goods refer to finished goods, which do not pass through the further process. These goods fulfill the wishes of the final producers or consumers or both.
The production line is a hypothetical line around the production area. As long as an object is traded within this limit, it is considered as intermediate goods. But the moment the production limit passes, it becomes the last thing.
In the process of production, intermediate goods (or nonfactor input) are known as intermediate consumption. The demand for intermediate consumption reflects the amount of expenditure incurred by all the production enterprises on intermediate goods in the economy.
Demand for intermediate consumption by corporate and semi - Corporate enterprises include expenditure on items, e.g. (i) Non-durable goods and services (ii) Repair and maintenance of capital goods (iii) Research and development.
The demand for intermediate consumption by the general government includes non-durable goods, durable goods, gifts of gifts from foreign governments, etc.
The demand for intermediate consumption by domestic enterprises includes expenditure on the maintenance of non-durable goods and residential houses etc.
Demand for last consumption reflects expenditure on final consumer goods. The last consumption demand includes the last consumption of the family and the last consumption of the general government.
Capital formation refers to the extra in existing capital stocks in a country during any given period. Gross domestic capital formation (GDCF) refers to capital formation happening within the domestic sector during one year.
Gross domestic capital formation involves changing gross domestic fixed capital and stocks.
Stock refers to unused stocks of raw materials, work on progress, and stock of finished goods with all sectors of the economy over a period of time.
Change is the stock with a productive enterprise, which is the difference between the closing stock and the opening of stock of raw materials, semi-finished goods and finished products with waste (usually one year). Changes in stock in the domestic sector of a country changes with the enterprises, changes in the general government and livestock.
Gross domestic capital formation is the net capital consumption (or depreciation) of gross domestic capital formation. Capital consumption reflects the loss in price made by fixed capital assets in the process of production during the accounting period.
The value of the output refers to the value of the total production produced during the accounting year on the market value.
The gross value added on the market value is the price production at zero on market value at the value of intermediate consumption. The gross value added on the factor cost is the gross value added on zero net indirect taxes. Indirect tax is the difference between indirect tax and subsidy.
Net worth market value added to market value (NVAMP) is the gross value added on zero capital consumption.
The net price market value added at factor cost is pure value added on zero net indirect taxes.
When the combined income of the pure value added factors cost, general government and self-employed of all enterprises is combined, then the net value is added to the factor cost within the domestic sector of the country. It is also known as the net domestic product at factor cost.
In the general government, the value of output is calculated based on the cost of providing goods and services such as defense, law and order, civil administration, education and health etc. It is equal to the sale of services and in general the free supply of services is available to the public.
The combined income of self-employed persons, the income of self-employed persons like doctors, lawyers, chartered accountants etc., and unorganized enterprises like small shopkeepers and small manufacturing.