If it is purchased by a household then it is a final good. It is a consumer durable good. If it is purchase by a taxi operator, then again it is a final good, as it is to be finally used by the producer as a fixed asset.
Is car a final good or intermediate good?
There are many intermediate goods that can be used for multiple purposes. Steel is an example of an intermediate good. It can be used in the construction of homes, cars, bridges, planes, and countless other products.
Can purchase of new car be Categorised as intermediate goods?
Yes, purchase of a new car can be categorised as an intermediate good if it is purchased by a car dealer for resale.
Is car always a final good?
Right Answer is: If it is purchased by a household, it is a final good. It is a consumer durable. If it is purchased by taxi-operators, then it is a final good. It is to be finally used by the producer as a fixed asset.
Is flour a final good?
Out of wheat and flour, only flour (final good) is included in National Income as value of flour already includes the value of wheat (intermediate good). Goods used up in the same year are Intermediate Goods: ADVERTISEMENTS: If they remain for more than one year, then they are treated as final goods.
What is final good give example?
Food, gasoline, clothing, and televisions are examples of final goods if used by households. Final goods can either be durable or non-durable. Final goods are also called consumer goods because they are consumed by the final user. Intermediate goods are goods that are used in manufacturing a product.
Which one of the following is an example of an intermediate good?
“Products that are made during a manufacturing process but that are also used in the production of other goods. Wood, steel, and sugar are all examples of intermediate goods.”
Is a car purchased by a taxi operator, an intermediate good or producer?
A car purchased by a taxi operator can be considered as a capital good, an intermediate as well as a final good (goods consumed by the final user) also. The car (here) is a capital good in the sense, it is bought for a future productive process.
What makes a car an intermediate good or producer?
The car (here) is a capital good in the sense, it is bought for a future productive process. It is an intermediate good because it is used as an input in the production of the final good – (here) the service.
Why are machines purchased by dealer of machines intermediate good?
Reason: Machines purchased by a dealer of machines is an intermediate good because machines are resold by the firms to make profits or value is yet to be added to these goods by way of further processing. 2. A car purchased by a household. [CBSE (AI) 2010]
