Match the following: 1. Intermed

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Match the following:

1.	Intermediate goods	A.	Can be divided into consumer goods and capital goods
2.	Final goods	B.	Satisfy human wants directly
3.	Consumption goods	C.	Value is added to these goods
4.	Capital goods	D.	Satisfy human wants indirectly

Options:

1-C, 2-A, 3-B, 4-D

1-C, 2-A, 3-D, 4-B

1-C, 2-D, 3-B, 4-A

1-B, 2-C, 3-A, 4-D

Correct Answer:

1-C, 2-A, 3-B, 4-D

Explanation:

Intermediate goods are those goods that remain within the production boundary and are not ready for use by the final users. More value is added to these goods for making them a final product.
Final goods are those goods that are outside the boundary of the production process and no value is added to them. They can be further classified into 2 categories: Consumer goods and capital goods.
Consumption goods satisfy human wants directly and have direct demand whereas, capital goods satisfy human wants indirectly and have indirect demand.