| Question | 3. “Machine purchased is always a final good.” Do you agree? Give reasons for your answer. |
| Class | Class 12 |
| Subject | Economics (Macroeconomics) |
| Category | Class 12 Economics Solutions Sandeep garg |
Q.3” Machine purchased is always a final good.” Do you agree? Give reasons for your answer.
Sol. The above statement is disagreed. Machine is a capital good and the nature of good depends upon the end- use of machine. A machine may be a producer good and may be a consumer good.
If a machine is purchased by a producer for further production it is treated as a capital good or final producer good.
If a machine is purchased by a vendor for the purpose of resale, it is treated as an intermediate good.
If a machine is purchased by an individual, it is treated as a consumption good or final consumer good.
Thus, Machine may be or may not be a final good, it depends upon the end- use of machine.
Related Questions – Sandeep Garg Macroeconomics Class 12 Solutions Basic Concepts of Macroeconomics
- Distinguish between Factor income and Transfer income.
- Distinguish between Final goods and Intermediate goods.
- Machine purchased is always a final good.” Do you agree?
- Which of the following expenditure are Intermediate or Final goods?
- Discuss the meaning of Consumption goods and Capital goods.
- Distinguish between Consumer goods and Capital goods.