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
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.