Classify the following as final goods or intermediate goods

Answer:-

(i) Machine purchased by a firm.

It is a Final Goods, as Machine purchased by a firm is not meant for sale, it is purchased for their own use that would help in further production.

(ii) Soft drinks purchased by the school canteen.

It is an intermediate goods, as Soft drinks are purchased by the school canteen to resale to the students and school staff. School canteen is not the final consumer of it.

(iii) Clothes purchased by an Individual.

It is a Final goods, as clothes are purchased by an individual for its own use for the satisfaction of wants, Individual is the final consumer of it.

(iv) Coal purchased by a factory.

It is an Intermediate goods, as the Coal purchased will be used in further production. It will become part of the final products.

(v) Electricity consumption in a business.

It is an Intermediate goods, as Electricity helps in producing the final product. its cost will be added to the final products of the business.

(vi) Book Purchased by a student.

It is a final goods, Book purchased by a student is for his own use for the satisfaction of wants. Student is the final consumer of it.

(vii) Books Purchased by a book Seller.

It is an intermediate goods. Books purchased by a bookseller is for resale, Book seller is not the final consumer of it.

(viii) Postage stamps purchased by a consumer.

It is a final goods, A Postage stamp purchased by a consumer is for his own use for the satisfaction of wants.

(ix) Postage stamps purchased by a business unit.

It is an intermediate goods, as postage stamp costs will be included in the final products. In other words, the purchase of postage stamps helps in producing the final goods and services of a business unit.

(x) Exhaust fans used for making water coolers.

It is an intermediate goods as Exhaust fans become part of the final goods in a year.

(xi) Seeds purchased by a farmer to produce wheat.

It is an intermediate goods as seeds become the part of final products (Crops) in a year.

(xii) Seeds purchased for kitchen gardening.

It is a final goods, as seeds purchased for kitchen gardening become part of the final goods (fruits or vegetables) that are for their own use.

(xiii) Machines purchased by a dealer of machines.

It is an intermediate goods, as Machines purchased by a dealer of machines is for resale.

(xiv) Car purchased by a household.

It is a final goods, as a car purchased by a household is for his own use for the satisfaction of wants. Household is the final consumer of it.

(xv) Sewing machine purchased by a housewife.

It is a final goods, as a sewing machine purchased by a housewife is for her own use for the satisfaction of wants.