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Which of these goods is not an intermediate good? - Economics

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Question

Which of these goods is not an intermediate good?

Options

  • A car purchased by a company for business purpose.

  • Stationary purchased by a publishing house.

  • Purchase of vegetables by a hotel.

  • A car purchased by a household for the use of his family.

MCQ
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Solution

A car purchased by a household for the use of his family.

Explanation:

  • In order to produce other commodities or services, intermediate goods are utilised.
  • A household's car purchase is for ultimate use, not manufacturing.
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Chapter 18: National Income and Circular Flow of Income - TEST YOURSELF QUESTIONS [Page 361]

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Frank Economics [English] Class 12 ISC
Chapter 18 National Income and Circular Flow of Income
TEST YOURSELF QUESTIONS | Q 2. | Page 361
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