Question

Read the following statements carefully:
Statement 1: Final goods are those goods which normally lose their identity in the production process.
Statement 2: Final goods may get transformed during the consumption process by a consumer.

• A. Statement 1 is true and statement 2 is false.
• B. Statement 1 is false and statement 2 is true.
• C. Both statements 1 and 2 are true.
• D. Both statements 1 and 2 are false.

Hint:

Final goods retain their identity in production and are not transformed until consumed. Intermediate goods, however, lose their identity in production.

Answer 1

The Correct Option is B

Step 1: Understanding final goods.
Final goods are goods that retain their identity and are ready for final consumption or investment. They do not lose their identity during production.
Step 2: Transformation of final goods.
Final goods, during consumption, can be transformed (e.g., food being eaten, or a car being driven), which means they may undergo changes during the consumption process. Therefore, Statement 2 is true.
Step 3: Conclusion.
Thus, Statement 1 is false, while Statement 2 is true. Final Answer:} Statement 1 is false and statement 2 is true.