Practicing Success
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? |
Intermediate good, final good Final good, intermediate good Producer good, final good Final good, capital good |
Final good, intermediate good |
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. |