Coal purchased by a household is _________ and it is __________ when purchased by a manufacturer.
Which of the following option suits best in the above blank?
Answer & explanation
Correct answer: option 2
The correct answer is option 2: Final good, intermediate good
Coal purchased by a household is typically used directly for consumption or immediate use, making it a final good for the household.
When purchased by a manufacturer, coal is typically used as an input in the production process to manufacture other goods, making it an intermediate good for the manufacturer.