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Basic Concepts & the Circular Flow · Question 15 of 72

Question 15

MediumOriginal question

A car dealer buys cars from the factory to resell them in the same year. For the dealer, the cars are

Options for question 15

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. Goods bought for resale within the year are intermediate: they have not reached a final user.

  2. The car becomes final when a household or a firm buys it to use.

Concept
Goods for resale
Typical time
70 s
Your time
—
The rule this testsFinal and intermediate goods
Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.