Question

Read the following extract and answer the questions that follow.

Let’s have a look on some essential items that a salon commonly has. These include : chairs, mirrors, shampoos, scissors, hair oil, hair dryer.

Now, Answer the following questions:

1. Classify the items into final goods and intermediate goods.
2. Give one difference between intermediate goods and final goods.

Answer 1

a.

Final Good		Intermediate goods
•	Chairs	•	Shampoos
•	Mirrors	•	Hair oil
•	Scissors
•	Hair dryer

b. Final goods are those goods which do not require further processing, while intermediate goods are those goods which are used up in the production process.