If a good is directly used by a consumer, what type of good is it generally classified as in GDP accounting?
Answer and explanation
Correct answer: Final good
A good purchased for direct consumption by the final user is classified as a final good. It is not intended to be used as an input for producing another good during the accounting period. Its value is included in GDP, while intermediate goods are excluded separately to prevent double counting.
Frequently asked questions
What is the correct answer to this question?
Final good
Why is this the correct answer?
A good purchased for direct consumption by the final user is classified as a final good. It is not intended to be used as an input for producing another good during the accounting period. Its value is included in GDP, while intermediate goods are excluded separately to prevent double counting.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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