Question

14. Giving reasons, classify the following goods into intermediate goods and final goods:
i) Milk purchased by the households.
ii) Purchase of rice by a grocery shop.
fii) Purchase of an air conditioner for use in shop.
iv)Cloth used for making a sofa - set by the carpenter.
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Answer 1

Giving reasons, classify the following goods into intermediate goods and final goods:

Explanation:

1. Milk purchased by the households will be a final product because  it will be used for final consumption by the households.
2. Purchase of rice by grocery stores is a intermediate consumption because the bought rice will be  used  for re-sale.
3. Purchase of an air conditioner for use in shop will be a final product because it will be used in the shop not will be resaled.
4. Cloth used for making a sofa - set by the carpenter is a intermediate good because it will be used  as a raw material to produce a  good.