Question

Classify the following as a final or intermediate good. Give reasons for your answer. 

Pen or Paper used by a consumer.

Answer 1

• The consumer uses the pen or paper for personal use rather than for resale or additional manufacture.
• It is ready for final consumption, which indicates it does not require any extra processing.
• National income accounting classifies things acquired for final use as final goods and includes them in the computation of national income.