MC Qu. 08 Which one of the following is...

Which one of the following is not an example of final goods in national income accounting?

Question

MC Qu. 08 Which one of the following is...

Which one of the following is not an example of final goods in national income accounting?

BlackTom AI · Accepted Answer

Question restatement: Which one of the following is not an example of final goods in national income accounting?

Option 1: lumber and steel beams purchased by a construction company. This is typically an input (intermediate good) used in building a structure, not a final good consumed or invested directly by end users. Therefore, it is not counted as a final expenditure in GDP.

Option 2: tractor purchased by a construction company. A tractor bought by a business is a capital formation item and counts as gross private domestic investment, i.e., a final good for investment purposes rather than an intermediate input.

Option 3: laptop computer purchased by an executive for personal use. When used for personal purposes, this laptop functions as a consumer good purchased by a household, which qualifies as a final good in national income accounting.

Option 4: desktop computer purchased by an executive for business use. This is a capital good used by a firm for its operations and is included in investment, representing a final good in the context of business investment rather than intermediate consumption.

In examining these choices, the key distinction hinges on whether the item is an intermediate input used to produce other goods or services, or a final good consumed or invested in directly. The lumber and steel beams stand out as the classic intermediate goods example among the options, since they are not themselves consumed or invested as a final output, but rather used to construct a larger asset.

MC Qu. 08 Which one of the following is... Which one of the following is not an example of final goods in national income accounting?

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