Question

2. Classify the following goods into intermediate goods and final goods:
(i) Milk purchased by a household.
(ii) Purchase of rice by a grocery shop.
(iii) Purchase of an air conditioner for use in shop.
(iv) Cloth used for making a sofa-set by the carpenter.​

Answer 1

Answer:

(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.

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