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Basic Concepts & the Circular Flow · Question 18 of 72

Question 18

MediumOriginal question

Read the two statements and choose the correct option.

I. All capital goods are final goods.

II. All final goods are capital goods.

Options for question 18

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. A capital good bought for investment has reached its final user, so it is final.

  2. But final goods also include consumption goods such as food and clothes, so II is false.

Concept
Capital and final goods
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.