Valuation of Goods and Services

Q.

What is the difference between capital goods and final goods?

Q. Two statements are given in the question below as Assertion (A) and Reason (R).

Read the statements, and choose the appropriate option.

Assertion (A): Not every goods and service produced in the economy must be counted to calculate the Gross Domestic Product.
Reason (R): The value of intermediate goods and services will be reflected in the value of the final goods and services.

[0.8 marks]

1. Both A and R are true, and R is the correct explanation of A.
2. Both A and R are true, but R is not the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Q.

Are Intermediate Goods Capital Goods?

Q. What is the term used for goods that are used for further production?

1. Finished goods
2. Intermediate goods
3. Final goods
4. Processed goods

Q.

What are final goods in economics?

Q. Consider a farmer who grows wheat. The farmer sells his wheat crop to a miller. The miller breaks down the wheat to make flour. The miller sells the flour to a baker. The baker then uses the flour to make a pizza base and sells the same to a restaurant. The restaurant then uses the pizza base to make a pizza and sells it to a customer.

Identify the intermediate goods in the entire process.

1. Wheat
2. Flour
3. Pizza
4. Pizza base

Q. Identify the incorrect feature of final goods.

1. Manufactured to be consumed directly by the consumer
2. Includes microwave oven, bicycle, and more
3. Goods require further processing in order to be consumed
4. Ready to be consumed and therefore do not require any further processing

Q.

What Are Intermediate Goods Used for?