Answer to Question #270475 in Macroeconomics for kea

Question

• Which of the following is a final good or service?
• A. A haircut paid for by a student.
• B. Fertiliser purchased by a farm supplier.
• C. Motor vehicle windows purchased by a motor assembly plant.
• D. Diesel fuel bought for a delivery truck

Answer 1

A) haircut purchased by a father for son

Final goods and services are the goods and services which are ready for direct consumption by consumers.

Fertiliser is the input of farm production, similarly motor window and fuel are intermediary goods so, these are not final goods for consumption.