Classify the given items as final good or service or as an intermediate good or service.

Question

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Answer 1

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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Students have asked these similar questions

The following graph shows the downward-sloping demand curve for Oiram-46, a monopolist producing unique magic hats. The graph also shows Oiram-46's marginal revenue curve and its average total cost curve. On the following graph, use the orange point (square symbol) to indicate the profit-maximizing quantity. Use the blue point (circle symbol) to indicate the profit-maximizing price. Use the purple point (diamond symbol) to indicate the average total cost. Use the tan rectangle (dash symbol) to show Oiram-46's total revenue and the grey rectangle (star symbol) to show its total cost. PRICE (Dollars per magic hat) 2 0 20 Marginal Cost 18 ATC 16 Profit-Maximizing Quantity 14 12 Profit-Maximizing Price MC 8 Demand 02 4 6 8 10 12 14 16 18 20 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit is equal to 5 TOTAL SCORE: 1/4 Average Total Cost Total Revenue Total Cost Grade Step 2 (to complete this step and unlock the next step)

Explain information regarding the effective interest rates being charged and how much higher the rent-to-own stores’ cash price exceeded the price of the identical item at a reputable retail outlet.

How can Rent-to-own industries avoid the restrictions on interest rates? Explain.

Answer 2

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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Answer 3

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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Answer 4

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

Answer 6

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

Answer 7

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Answer 8

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.