a) No, flour is an intermediate great for a bakery, as he uses it for the further production of excellent. He makes bcheck out, pastries, and cakes through flour which he had purchased. So, it is a purchase of intermediate good fairly than last excellent.b) Purchase of an aircraft carrier by the federal federal government deserve to be categorized as last good as it is a federal government purchase.c) Yes, Consumer does not use wine for the manufacturing of some other great so it is not an intermediate good. It is a last excellent as customer buys French wine for his own intake.d) No, it is a kind of investment by a firm. Firm usage it to earn even more money.




You are watching: Which of the following transactions represents the purchase of a final good

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Video Transcript

So in this video I are trying to answer check out on that the Ford it's impose that were offered is a purchase off the final Good. So to understand also, to answer this question and similar concerns later on, it is incredibly vital to understand the difference distinction in between intermediate goods and last goats. And the distinction between 2 media goods and final gross is isn Emily, that intermediate products are supplied use for manufacturing of, um, other goods. I did good. So this is kind of tricky ease because the same thing could be offered for production off one more great. But you might also be provided to for for usage, for tempo. Our first 0 Andi, simply, you recognize, let me step back. So intermediation excellent intermediate girls are offered for production off on that for production off an additional good well, finally goes. Means they're supplied for usage or for investments is not. It's not offered to to to to productive, to develop one more good. So and simply choose I stated, it is kind of tricky bereason various perboy can have actually various function when utilizing the same kind of items. So our initially instance waas um, the purchase of flour by a bakery. So obviously bakery were used flour to develop cake expush, so they supplied flowers to produce oughta goose, and therefore the precious flower by a bakery is not is not a purchase off final good. However, if if the case is that it is the per chase off flower by a lady, then the lady most likely would certainly simply use the freduced for her own usage they would certainly make. She will certainly make breasts for herself, so in that instance, it is a purchase off off a final good, but appreciates a flower by a bakery. It it is not a purchase of last excellent, because the bakery will certainly be making use of a flower for some other productions. And second instance is the precious, often aircraft carrier by the federal government's. This is a purchase off a last good because it is unmost likely that the federal government will develop one more product out after aircraft, right? They would simply do the government purchase and use their aircraft, for tbelow are business, yet it is not. It is not a purchase off India. Miracle it intermediate great. It is the purchase purchase off a final great. I definitely appreciate the priceless off French wine by a U. S. Consumer. This is, I think, plainly a purchase of a final good, bereason the consumer would certainly simply consume the wine. Is that off? You recognize, making somepoint else out off the wine. Thus the 3rd kay East Eastern instance. Off a purchase off a final great. Lastly, the per chase off a brand-new airline by Amerideserve to Airlines. This will be take into consideration a valuable off an intermediate great, bereason the Emory, bereason the Murray Amerihave the right to Airlines we'll make business out off the new airlines, right? They will most likely reconstruct the new airline or, uh, the airliner and also then make trying to make make the airliner to product off Amerihave the right to Airlines. So So the purchase of a new airliner by America realizes, not appreciates of fun of good, because American allies, the studio going to use it for making further amount of money