Briefly explain whether each of the following transactions represents the purchase of a final good. a. The purchase of flour by a bakery b. The purchase of an aircraft carrier by the federal government c. The purchase of French wine by a U. S. consumer d. The purchase of a new airliner by American Airlines

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Social Studies

Jadiel Rose

18 November, 03:49

Briefly explain whether each of the following transactions represents the purchase of a final good. a. The purchase of flour by a bakery b. The purchase of an aircraft carrier by the federal government c. The purchase of French wine by a U. S. consumer d. The purchase of a new airliner by American Airlines

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Lilianna Underwood · Answer 1

Option A is not an example of purchase of a final product, a bakery is an institution that uses flour to product IRS final goods, which are, bread, cakes etc do the purchase of flour by the bakery is not a finished product.

Option b is a purchase of finished good, as the aircraft is a finished product of engineering, it has undergone several processes before it became an aircraft, so the aircraft is a finished good

Option c, the purchase of French wine by US consumer is an example of finished good, the wine is the finished good, the wine before it became a wine, it has passed through a several process but the finished good is the wine.

Same extends to option D, the new airline is a finished good, it is a new airline it has gone through process before it is been purchased as a new airline, any thing finished good must have passed through a process.