Concept of final and intermediate Goods  Final Goods They are those goods which are acquired for personal consumption and investment . These goods reach their final user . They remain outside the production boundary.  Examples . ( a ) Wheat , furniture , cloth bread , butter , etc. , used by the consumers . ( b ) Machines used by producers  ( c...

National income and concept of GDP National Income NI or National Product is defined as the money value of all final goods and services produced within the domestic territory of a country in an accounting year plus net factor income from abroad . Domestic income is the value of production within the domestic territory of a country .These different concepts...

 Circular flow of income   An economy is an integrated system of production , exchange and consumption . In carrying out these activities , people buy and sell goods and services . Income generated in the production process flows in a circular manner. It is circular because there is no beginning or an end.  Circular flow of income refers to flow...

Define Macroeconomics and it's major issues Macroeconomics is the study of the economic system as a whole . It examines the conditions involved in aggregate production , aggregate income , aggregate consumption , aggregate saving and investment as well as aggregate employment . That is why it is also called " Aggregate Economics ". Macroeconomics is the study of...