is purchase of chalk by the school intermediate or final good? also the swings and slides purchased by a park is a final or an intermediate good??
is interest on loan taken from a friend for purchasing bike included in national income?
chalks, dusters etc. purchased by a school will be treated as intermediate product because such productors are non - durable products and remain within production boundary. such products are used in the process of production of services.
the swings and slides purchased by a park is a final good because it is final consumption by a consumer.
chalk purchased by a school will be treated as final goods because they are purchased for their own consumption purpose.. but swings purchased by park will be treated as intermediate goods because they are purchased in order to produce further service to those coming to the park.
FINAL GOODS; the goods which are meant either for consumption by consumers or for investment by firms are called final goods.
INTERMEDIATE GOODS; goods which are used as raw materials for producing other goods or for resale in the same year of purchase are called intermediate goods.
1 purchase of chalk by the school is a final good and not an intermediate good.
2 swings and slides purchased by the park is a final good.
According to me either the purchase of chalks or swings and slide by a school are final goods baecause they are in the hands of their final user and outside the production boundary.
No,,,interest on loan charged by frnd for purchasing bike will not be considered in national income coz loan was not given for any productive motive.
experts please make me correct if im wrong somewhre... :)