Question

Which of the following goods are usually intermediate goods and which are usually final goods:

a. running shoes
b. cotton fibres
c. watches
d. textbooks
e. coal sunscreen lotion
f. lumber

Answer 1

Intermediate goods include cotton fibers, coal, and lumber, while running shoes, watches, textbooks, and sunscreen lotion are examples of final goods.

Step-by-step explanation:

Intermediate goods are goods that are used as inputs in the production process of other goods and services, while final goods are goods that are sold to consumers for their final use or consumption. Based on this definition, the following goods can be classified as intermediate goods:

• Cotton fibers: Cotton fibers are used as an input in the production of textiles and clothing.
• Coal: Coal is used as a fuel in various industries, such as power generation and steel production.
• Lumber: Lumber is used in construction and manufacturing industries to produce furniture, buildings, and other wood-based products.

The following goods can be classified as final goods:

• Running shoes: Running shoes are sold directly to consumers for their personal use.
• Watches: Watches are also sold directly to consumers as a finished product.
• Textbooks: Textbooks are purchased by students for their educational needs.
• Sunscreen lotion: Sunscreen lotion is used by consumers for protection from the sun's rays.