Economics For Today
Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
Question
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Chapter 15, Problem 1SQP

(a)

To determine

Identify the hair cut purchased from the hair salon is a final goods and services or intermediate goods and services.

(a)

Expert Solution
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Explanation of Solution

Hair cut purchased from the hair salon is a final services. The reason is, for the hire cutting, this is the final or ultimate service the consumer can available.

Economics Concept Introduction

Final goods: These goods are not used as raw materials for the production of other commodities during the accounting year.

(b)

To determine

Identify a new automobile is a final goods and services or intermediate goods and services.

(b)

Expert Solution
Check Mark

Explanation of Solution

A new automobile is a final good and it can be go for ultimate consumption by the consumer or this can consumed and utilized directly by the consumers themselves.

(c)

To determine

Identify an oil filter purchased in a new automobile is a final goods and services or intermediate goods and services.

(c)

Expert Solution
Check Mark

Explanation of Solution

Purchase of oil filter in a new automobile is an intermediate good. It is consumed along with the automobile and oil filter cannot use alone.

Economics Concept Introduction

Intermediate goods: These goods may be used as raw materials for the production of other goods during the accounting year.

(d)

To determine

Identify crude oil is a final goods and services or intermediate goods and services.

(d)

Expert Solution
Check Mark

Explanation of Solution

Crude oil is an intermediate goods, because it is considered as a raw material and it cannot used alone.

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Students have asked these similar questions
Which of the following are final goods or services, and which are intermediate goods or services? a. A Haircut purchased from a hair salon  b. a new automobile  c. an oil filter purchase in a new automobile d. Crude oil
Which of these will be a part of the gross domestic product? a. Income from this year’s final output b. Income of citizens from abroad c. Income from selling second hand items d. Income from illegal activities
Which of the following are final goods or services,and which are intermediate goods or services?a.A haircut purchased from a hair salon.b.A new automobilec.An oil filter purchased in a new automobiled.Crude oil
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