Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

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?

Options:

Intermediate good, final good

Final good, intermediate good

Producer good, final good

Final good, capital good

Correct Answer:

Final good, intermediate good

Explanation:

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.