Final answer:
Purchases B (new fire truck) and C (domestic wine) represent the purchase of final goods because they are consumed by the final user without further manufacture or resale. Purchases A (tires for car manufacture) and D (new machine tool) are not final goods, as these items will be utilized in the production of other goods.
Step-by-step explanation:
When asked whether the following transactions represent the purchase of a final good, it's important to understand what a final good is. A final good is a product that is purchased by its final user and is not used for further manufacturing, processing, or resale. We can analyze each transaction accordingly:
- A. The purchase of tires from Bridgestone tire company by an automobile manufacturer - This does not represent the purchase of a final good, because the tires will be used in the production of new cars, which are the actual final goods.
- B. The purchase of a new fire truck by the local government - This does represent the purchase of a final good since the government is the final user of the fire truck, and it will not be resold or used in manufacturing.
- C. The purchase of domestic wine by a French consumer - This is the purchase of a final good, as the consumer is the end-user and the wine will not be resold or further processed.
- D. The purchase of a new machine tool by the Ford Motor Company - This transaction is not for a final good because the machine tool will be used by Ford in the production of vehicles.
In summary, purchases B and C represent the purchase of final goods, while purchases A and D do not.