The correct answer is Option (4) → Car used as a taxi by a person
An intermediate good is a good used as an input in the production of other goods or services, and it is either resold or completely used up/transformed within the same accounting year. A final good is purchased for final consumption or for investment (capital goods).
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Chalks used in a private school: The school uses the chalk to provide the service of education. It is used up in the process of production (teaching) and is an input for the school. → Intermediate Good.
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Seeds used by a farmer: The farmer uses the seeds to grow a crop (the final product). The seeds are consumed/transformed in the production process. → Intermediate Good.
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Rice purchased from a grocery store by a restaurant: The restaurant will use the rice as an input/ingredient to prepare meals, which are then sold to customers (the final service). The rice is resold in a transformed state. → Intermediate Good.
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Car used as a taxi by a person: A car is a durable asset that is used repeatedly over many years to produce the service (transportation). Goods used for investment, like machinery and durable equipment, are classified as Final Goods (specifically, Capital Goods), as they are not used up in a single accounting year.
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