Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Among the following identify the intermediate goods.

A. Straw used for sipping cold drinks
B. Black board used for teaching
C. Copper used for making utensils
D. Bicycle used for going to school
E. Steel sheet used for automobiles

Choose the correct answer from the options given below:

Options:

C and E only

A and B only

B and D only

D and A only

Correct Answer:

C and E only

Explanation:

Intermediate goods are goods used in the production process but not directly consumed or used by the end consumer. Looking at the options, C and E is the correct answer:

C. Copper used for making utensils: Copper is a raw material that is used to make utensils. It is not consumed in its final form, but rather it is used to produce another good.

E. Steel sheet used for automobiles: Steel sheet is a raw material that is used to make automobiles. It is not consumed in its final form, but rather it is used to produce another good.

 

A. Straw used for sipping cold drinks: Straws are used to sip cold drinks. They are consumed in their final form.

B. Black board used for teaching: Blackboards are used for teaching. They are consumed in their final form.

D. Bicycle used for going to school: Bicycles are used for transportation. They are consumed in their final form.