Question

Assertion (A): The flour purchased by a baker is considered an intermediate good.

Reason (R): The flour is used for the production of bread, cakes, and biscuits to be sold to the consumer.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Intermediated goods are goods that are used in the production of finished goods.