Question

Read the following flow chart carefully and choose the correct option:

• A. Transfer goods
• B. Capital goods
• C. Non-durable goods
• D. Semi-durable goods

Hint:

Final goods are divided into consumption goods (for direct use) and capital goods (for production purposes).

Answer 1

The Correct Option is B

Concept: Classification of Goods
In economics, goods are broadly classified based on their use into:

• Final Goods: Goods that are used for final consumption or investment.
• Intermediate Goods: Goods that are used as inputs in the production of other goods.

Further, final goods can be subdivided into:

• Consumption Goods: Goods used for satisfying human wants directly.
• Capital Goods: Goods used for further production of goods and services.

Step 1:Analyze the flow chart
From the given flow chart:

• Goods are first divided into Final Goods and Intermediate Goods.
• Under Final Goods, one branch is labeled as Consumption Goods.
• The other branch is left blank and needs to be identified.

Step 2:Identify missing category
Since final goods are of two types:

• Consumption Goods
• Capital Goods

the missing category must be:

• Capital Goods

Step 3:Conclusion
\[ \text{Missing category = Capital Goods} \]