Question

Which of these goods is not a final goods?

Options

• Expenditure incurred by households on the purchase of food terms.

• Purchase of a factory machine by a firm.

• Seeds purchased by farmers for producing rice.

• Pen purchased by a student.

Answer 1

Seeds purchased by farmers for producing rice.

Explanation:

Seeds are intermediate products rather than end goods since they are utilised to produce another good (rice). Finished goods are not used for additional manufacturing but rather for direct investment or consumption.