Which of the following statement(s) is/are correct regarding the intermediate…
2021
Which of the following statement(s) is/are correct regarding the intermediate goods in an economy? I. These are not final goods. II. Steel sheets used for making automobiles is one of its examples.
Answer: C. Both I and II — Intermediate goods are goods used as inputs in producing other goods; they are not final goods meant for final consumption. Steel sheets used for making…
- A.
Only I
- B.
Only II
- C.
Both I and II
- D.
Neither I nor II
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Correct answer: C
Intermediate goods are goods used as inputs in producing other goods; they are not final goods meant for final consumption. Steel sheets used for making automobiles are inputs used to produce cars, so they are intermediate goods. Therefore, both statements I and II are correct.
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