Question

All goods used by consumers are final goods?
State true or false with reason.

Answer 1

Dear Student,


Final Goods are used to two purpose
1) For Consumption : like milk , toothpaste etc which are personal consumption of households OR
2) For Investment : like machinery , building etc which are purchased for capital fomation

So the above statment is False as Final goods are used for both consumption and for investment.


Regards