Final goods are divided into:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. consumption goods and capital goods.
- Final goods, which are the end products of a production process, are indeed categorized into consumption goods and capital goods. Consumption goods are those used by households for direct satisfaction (e.g., food, clothing).
- Capital goods, on the other hand, are used in the production of other goods and services (e.g., machinery, tools). This distinction is fundamental in national income accounting.