Question | 4. Which of the following expenditure are Intermediate or Final goods ? |
Class | Class 12 |
Subject | Economics (Macroeconomics) |
Category | Class 12 Economics Solutions Sandeep garg |
Q.4 Which of the following expenditure incurred are on intermediate products and which are on final products? You must state reason for your answer:
- Purchase of tickets for train journey by an individual
- Purchase of eatables by a firm
- Purchase of a car by an employer for office use by his employees.
Solution:-
- FINAL PRODUCT. It is a final consumer good as it is purchased by the individual to satisfy his wants.
- INTERMEDIATE PRODUCT. It is an intermediate good as it will be used for further production of a product.
- FINAL PRODUCT. It is a final producer good (capital good) as it is used to provide services to the employees which in a way help in further production.
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.