--%>

Categorizing goods into intermediate and final goods

Describe the basis of categorizing goods into intermediate and final goods. Give appropriate illustrations.

E

Expert

Verified

The Goods that are purchased by a production unit from other production units and signify for resale or for using up completely throughout similar year are termed as intermediate goods for illustration: raw material. Goods that are bought for consumption and investment are termed as final goods for illustration: Purchase of machinery for instalation in the factory.

   Related Questions in Microeconomics

  • Q : Market Power and Monopsony Power Assume

    Assume that a firm with the market power in output market wishes to grow and that hiring more workers needs it to increase salaries 8 percent for all the workers. The output prices will most likely: (i) Increase 8 percent to cover the wage rise. (ii) Increase less tha

  • Q : Price elasticity of supply computations

    At a $2 price per can, there quantity of applesauce supplied per day is 1000 cases; and at $4, the quantity supplied is 3000 cases per day. Therefore price elasticity of supply is: (i) 2/3. (ii) 1/3.(iii) 3/2. (iv) 1/4.

    Q : Marginal Productivity Theory of Income

    The income distribution into a market economy is primarily found by differences within: (1) effort and sacrifice alone. (2) resource ownership and resource prices. (3) birth and social standing. (4) Lorenz coefficients. (5) political

  • Q : Output From the heterodox approach,

    From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?

  • Q : Technology used in price and supply Can

    Can someone help me in finding out the precise answer from the given options. The citizens in lower 48 states utilize lots of wild Alaskan salmon till a major oil spill close to Anchorage spoils the fishing. The ____ of salmon will increase whereas the ____ reduces. (

  • Q : Long run economic growth When people

    When people become optimistic about living longer and accordingly save more for their retirement years, in that case the decline into interest rates will tend to: (w) raise capital costs for business firms. (x) decrease investment expenditures. (y) di

  • Q : Determine relatively price elasticity

    A price elasticity of demand of 2.0 implies that at that point, the demand curve is: (w) income elastic. (x) relatively price elastic. (y) relatively price inelastic. (z) unitarily price elastic. I need a good answ

  • Q : Determinants of genuine Demand The

    The demand for authentic leather footballs would tend to rise if: (1) Prices for football pads and cleats reduced. (2) Cheap footballs recently molded from the synthetic fibers demonstrated enhanced durability and performance. (3) Latest records were set for injuries

  • Q : Technological advances in natural

    Natural barriers to entry may be overcome across time from: (w) cut-throat competition. (x) elimination of patent laws. (y) technological advances. (z) rigorous enforcement of antitrust laws. How can I solve my

  • Q : Question based on poverty rate Select

    Select the right ans wer of the question. Which of the following would we expect to contain the highest poverty rate? A) white households headed by males B) elderly white households C) white households headed by females D) African-American households headed by femal