Practicing Success
Mr. Shubham, who is a car dealer, purchases a car for her daughter as she recently turned 18. Under which category will the purchased car come? |
Final good Intermediate good Capital good None of the above |
Final good |
Mr. Shubham has purchased the car for her daughter that means it is not meant to be sold rather than it will be used by her daughter. Hence, it will be included under "Final good". Intermediate goods are those goods which are purchased by one production unit from other production units during the year. Capital goods are the one's which help in the production of the other goods. Note- Had the situation been, where the car was purchased for selling it to the other party it would have been considered as an intermediate good. |