Classify each of the following items as a final good or an intermediate good, and classify the expenditure on each final good a

Question

2 years ago

7

Classify each of the following items as a final good or an intermediate good, and classify the expenditure on each final good a

s consumption expenditure or investment:
a. Fertilizer bought by a Florida tomato grower.
b. A haircut bought by a student.
c. New cars bought by Hertz comma the car rental firm.
d.. A new bridge across the creek in the Augusta National Golf Club.

Business

1 answer:

klasskru [66] · Answer 1 · 2022-04-04T13:45:53+03:00

Answer:

Classification of Goods

a. Intermediate good; Investment

b. Final Good = Consumption

c. Intermediate good; Investment

d. Intermediate good = Investment

Explanation:

An intermediate good produces a final good for consumption. Intermediate goods are used for investment to generate more resources that can be consumed in the future. A final good, in most cases, does not require further processing. It is consumed immediately by the buyer.

Classify each of the following items as a final good or an intermediate​ good, and classify the expenditure on each final good a

Classify each of the following items as a final good or an intermediate good, and classify the expenditure on each final good a