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iii. In contrast to final goods, goods such as wheat and the wheat flour in this
example are intermediate goods. Intermediate goods are used up in
producing final goods and services. The value of final goods already includes
the value of all the intermediate goods that are used in making the final good.
Hence, the value of Rs 60 for the biscuits (final good) already includes the
value of flour (Rs 10). Similarly, the value of all other intermediate goods would
have been included. To count the value of the flour and wheatseparately is
therefore not correct because then we would be counting the value of the
same things a number of times. First as wheat, then as flour and finally as
biscuits.
iv. In the past 100 years, there has been a further shift from secondary to tertiary
sector in developed countries. The service sector has become the most
important in terms of total production. Most of the working people are also
employed in the service sector. This is the general pattern observed in
developed countries.

RISING IMPORTANCE OF TERTIARY SECTOR IN PRODUCTION
(Pg. No. 24, 25 & 26)
i. Every country requires basic services as hospitals, banks, offices,
transportation etc. the government has to take responsibility of these services.
ii. Greater the development of primary and secondary sector, more would be the
demand for the tertiary sector.
iii. As the income level rises people demand more of services for better life.
iv. New services, as IT, communications, have become essential
v. However, the entire sector has not grown. Large numbers of people engaged as
construction workers, maid peons, small shopkeepers etc. do not find any
change in their life.