Match List-I with List-II.
| List-I | List-II | ||
| (A) | Raw Material | (I) | Capital Goods |
| (B) | Machines used in Production | (II) | Final Goods |
| (C) | Bread used by a Consumer | (III) | Intermediate Goods |
| (D) | Services used by Consumer | (IV) | Consumer Goods |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(I), (C)-(II), (D)-(IV)
Goods are classed by how they are used. A good used up in making another good is an intermediate good. A good that needs no further change is a final good. Final goods are either consumer goods or capital goods.
| List-I | List-II | Reason |
|---|---|---|
| (A) Raw Material | (III) Intermediate Goods | Raw material is used up and changed in making other goods. |
| (B) Machines used in Production | (I) Capital Goods | Machines are durable and help production without being changed by it. |
| (C) Bread used by a Consumer | (II) Final Goods | Bread bought by a consumer needs no further processing. It is used as it is. |
| (D) Services used by Consumer | (IV) Consumer Goods | Services like recreation, consumed when bought by the final consumer, are counted with consumer goods. |
Note: Some items of List-I fit more than one entry of List-II:
(B) Machines used in Production → both (I) and (II). Capital goods are also final goods, though they are not consumed.
(C) Bread used by a Consumer → both (II) and (IV). Food bought by its final consumer is a consumer good as well as a final good.
(D) Services used by Consumer → both (II) and (IV). Such services are final as well as consumer goods.
NCERT (2026-27): “2.1 Some Basic Concepts of Macroeconomics …Of the final goods, we can distinguish between consumption goods and capital goods. Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called consumption goods or consumer goods. (This also includes services which are consumed but for convenience we may refer to them as consumer goods.) Then there are other goods that are of durable character which are used in the production process. These are tools, implements and machines. While they make production of other commodities feasible, they themselves don’t get transformed in the production process. They are also final goods yet they are not final goods to be ultimately consumed.… These are capital goods and they gradually undergo wear and tear, and thus are repaired or gradually replaced over time.… …Thus if we consider all the final goods and services produced in an economy in a given period of time they are either in the form of consumption goods (both durable and non-durable) or capital goods. As final goods they do not undergo any further transformation in the economic process. Of the total production taking place in the economy a large number of products don’t end up in final consumption and are not capital goods either. Such goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles and copper used for making utensils. These are intermediate goods, mostly used as raw material or inputs for production of other commodities. These are not final goods.…” |