Arrange the following goods in the order in which they pass through the stages of production, ending with the final good:
(A) Cloth
(B) Raw cotton
(C) Article of clothing
(D) Yarn
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (B), (D), (A), (C)
Each good is the input of the next stage.
(B) Raw cotton — grown by the farmer and sold to a spinning mill.
(D) Yarn — made from raw cotton and sold to a textile mill.
(A) Cloth — woven from yarn.
(C) Article of clothing — made from cloth and sold to consumers; the final good.
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. …” |