Question

Read the following flow chart carefully and choose the correct option:

• A. Transfer goods
• B. Capital goods
• C. Non-durable goods
• D. Semi-durable goods

Hint:

Final goods are divided into consumption goods (for direct use) and capital goods (for production purposes).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Final goods are those goods which have crossed the boundary line of production and are ready for use by their final users.
Step 2: Detailed Explanation:
Final users are divided into two categories: Consumers and Producers.
1. Goods used by consumers to satisfy their wants directly are called Consumption Goods.
2. Goods used by producers for the production of other goods (fixed assets) are called Capital Goods.
Options (C) and (D) are sub-types of consumption goods, whereas the primary classification of final goods is into Consumption and Capital goods.
Step 3: Final Answer:
The missing box in the classification of final goods is Capital Goods.