1.

State whether the following statements are true of false. Give reasons for your answer : . (a) Breadis always a consumer good. (b) Butter is only a final product.

Answer»

SOLUTION :(a) True. Capital FORMATION is measured over a period of time.
(b) FALSE. It depends on the use of bread. When it is purchased by a household, it is a consumer good. If it is purchased by HOTEL, it is a producer (intermediate) good.
(C) False. It depends on the end use of butter. If it is purchased by a baker cakes, then it is an intermediate good.


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