Match List-I with List-II
| List-I | List-II | ||
| (A) | Not pass through any more stages of production or transformations | (I) | Capital goods |
| (B) | Consumed when purchased by their ultimate consumers | (II) | Intermediate goods |
| (C) | Gradually undergo wear and tear | (III) | Final goods |
| (D) | Used by other producers as material inputs | (IV) | Consumption 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)-(IV), (C)-(I), (D)-(II)
Goods are grouped by how they are used. Final goods have finished their journey through production, and they are either consumption goods or capital goods. Intermediate goods are still on the way to becoming something else.
| List-I | List-II | Reason |
|---|---|---|
| (A) Not pass through any more stages of production or transformations | (III) Final goods | An item meant for final use needs no more work by any producer. |
| (B) Consumed when purchased by their ultimate consumers | (IV) Consumption goods | Food, clothing and services like recreation are used up by the final buyer. |
| (C) Gradually undergo wear and tear | (I) Capital goods | Tools, implements and machines last long and help production for many cycles. They are repaired or replaced over time. |
| (D) Used by other producers as material inputs | (II) Intermediate goods | Steel sheets for making automobiles and copper for making utensils are raw materials or inputs. |
NCERT (2026-27): “2.1 Some Basic Concepts of Macroeconomics …Thus a farmer producing cotton sells it to a spinning mill where the raw cotton undergoes transformation to yarn; the yarn is, in turn, sold to a textile mill where, through the productive process, it is transformed into cloth; the cloth is, in turn, transformed through another productive process into an article of clothing which is then ready to be sold finally to the consumers for final use. Such an item that is meant for final use and will not pass through any more stages of production or transformations is called a final good.… 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.… Then there are other goods that are of durable character which are used in the production process. These are tools, implements and machines.…These are capital goods and they gradually undergo wear and tear, and thus are repaired or gradually replaced over time.… 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.…” |