Classify the folllowing goods into intermediate goods and final goods:
(i) Milk purchased by a household
(ii) Purchase of rice by a grocery shop
(iiii) Purchase of an air conditioner for use in a shop
(iv) Cloth used for making a sofa-set by the carpenter
Classify the folllowing goods into intermediate goods and final goods:
(i) Milk purchased by a household
(ii) Purchase of rice by a grocery shop
(iiii) Purchase of an air conditioner for use in a shop
(iv) Cloth used for making a sofa-set by the carpenter
(i) Milk directly satisfies the wants of the households or the consumer. It is a final good when purchased by a household.
(ii) Rice purchased by a grocery shop is an intermediate good because the rice is purchased for resale to final users.
(iii) An air-conditioner purchased by a shop is a final good because the air conditioner is investment expenditure; it adds to the capital stock of the shop.
(iv) Cloth used for making a sofa-set by the carpenter is an intermediate good as it is used as a raw material to produce a final good.
(i) Milk directly satisfies the wants of the households or the consumer. It is a final good when purchased by a household.
(ii) Rice purchased by a grocery shop is an intermediate good because the rice is purchased for resale to final users.
(iii) An air-conditioner purchased by a shop is a final good because the air conditioner is investment expenditure; it adds to the capital stock of the shop.
(iv) Cloth used for making a sofa-set by the carpenter is an intermediate good as it is used as a raw material to produce a final good.
