Question

can a good be a final in one case and intermediate goods in another case ? explain with an example

Answer 1

Explanation:

True: A good can be an intermediate goods or final goods, depending upon its nature of use. For example, a car purchased by a household is a final good, whereas, it will be an intermediate good if it is purchased by a car dealer.

Answer 2

Explanation:

• goods which are purchased by the production unit from other production unit and means for resale or for using up completely during the same here are called intermediate goods for raw material

• goods which are purchased for consumption and investment Accord final goods

for example

• purchase of machinery for installation in factory