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Which Among the Following Are Final Goods and Which Are Intermediate Goods? Give Reasons. Milk Purchased by a Tea Stall Bus Purchased by a School Juice Purchased by a Student from the School Canteen - Economics

Which among the following are final goods and which are intermediate goods? Give reasons.

1) Milk purchased by a tea stall

2) Bus purchased by a school

3) Juice purchased by a student from the school canteen

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Solution

Milk purchased by tea stall – Intermediate good as milk will be used as an input to make the final product i.e. tea.

Bus purchased by school- Final good as bus will be used by the school. School is the final user of bus.

Juice purchased by a school student from the canteen- Final good as juice will be consumed by the student. Here, student is the final user of juice.

Concept: Basic Concepts - Final Goods
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