Which of the following statements is/are correct? Statement I: Intermediate goods are goods used as inputs in the production of other goods Statement II: Capital goods are durable goods used in production that do not get transformed into the final product.
Both statements I and II are correct
Statement I: Intermediate goods are goods used up as inputs in producing other goods (for example, steel used to make cars or flour used by a bakery). Statement I is correct.
Statement II: Capital goods (machines, tools, buildings) are durable goods that help in production over many years; they undergo wear and tear but do not become part of the final product. Statement II is correct.
So both statements are correct.
Hence, Both statements I and II are correct.
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