Which of the following expenditure are Intermediate or Final goods

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:

  1. Purchase of tickets for train journey by an individual
  2. Purchase of eatables by a firm
  3. Purchase of a car by an employer for office use by his employees.

Solution:-

  1. FINAL PRODUCT. It is a final consumer good as it is purchased by the individual to satisfy his wants.
  2. INTERMEDIATE PRODUCT. It is an intermediate good as it will be used for further production of a product.
  3. 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.




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