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Which among the following are final goods and which are intermediate goods ? Give reasons.(a) Milk purchased by a tea stall(b) Bus purchased by a school(c) Juice purchased by a student from the school canteen. |
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Answer» (a) Milk purchased by a tea stall is intermediate good because it is purchased from another production unit for resale indirectly. (b) Bus purchased by a school is a final product because expenditure on school bus is investment expenditure. (c) Juice purchased by a student from the school canteen is a final good because purchased by consumer for own use and not for resale. Detailed Answer : (a) Milk purchased by a tea stall is an intermediate good, because it is purchased by a firm as a raw material for the process of production of other good. (b) Bus purchased by a school is a final good as it is purchased for the consumption and not for reselling. (c) Juice purchased by a student from the school canteen is a final good as it is purchased for the consumption and not for reselling |
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