Intermediate versus final consumption

Final demand is based on end user customers so final consumption consist of consumer
households, investment or capital formation, exports and government final consumption.
Intermediate consumption includes goods purchased for resale and goods used for further
production. For e.g.: Milk purchased by Dairy shop(resale) and Milk purchased for making
sweets.
The division of demand for output of sector of Final and Intermediate goods is being
measured by analysis of expenditure on final consumption expenditure. All the services
serve final demand and intermediate demand by studying from input flow matrix which will
give us a ratio of outputs and its consumption as inputs. Noting here that International
transactions are excluded from this matrix
The different subsectors classified are given below:

 Relatively more intermediate

 Relatively more final and
 Partly intermediate and partly final

Barriers to Education for job aspirants

Identifying barriers for education requires analysis on number of people in labour force
sector broadly classified between illiterates and graduates. If we look at primary data, it
consists of seven education classes: illiterate, literate but no junior school, with junior
school, high school then secondary and then degree holder and above. The paper has
chosen the end points of these seven classifications because it will provide a better
comparison between sectors and will create meaningful insights. And also, too many
classifications would make complex to draw comparison.
The sectors are classified below as high or low based on the Z parameters for graduate
people and as well as illiterates only because it will provide a better comparison between
sectors and will create meaningful insights. Also, too many classifications would not create
clear distinction

 Low: few examples- transport, storage entertainment services etc

 Medium: few examples- railways, communications etc
 High: few examples- banking, business services

Capital intensity
Capital intensity of a firm is measured by capital labour ratio. As time goes on the capital
labour ratio increases due to capital investment and productivity improvements. It is also
estimated that capital stock enhances the capital formation with economic growth and
future production growth. Net capital stock includes three type of assets: machineries,
constructions and also software. Categories of these sectors are low, medium and high.
Here business and renting services are excluded. According to the data used in the paper,
high capital intensity is mostly driven by renting services and land and buildings (real estate)
business. According to the facts/tables given in paper it is seen that yield of renting and real
estate business is 4 times the creation of increase in employment. And so real estate and
renting services comes under the category of high capital intensity whereas business service
under medium capital intensity.

Skill intensity
The intensity of a sector is divided between- professional and technical workers (which
includes engineers, doctors, scientist); administrative and managerial workers (which
includes corporate managers and government officials). The classification of occupation
includes five more classification: sales, service, clerks, farmers ,production employees. Here
also the sectors are divided into three categories:

 Low: few examples- railways, storage entertainment services etc

 Medium: few examples- banking, communications etc
 High: few examples-business and community services