Question

Which of the following would be a final good?

Answer 1

Answer:

Final good among the given choices is a car company plant buys 2 million tires.

Explanation:

A car company’s plant purchase of 2 million tires would be good choice as this can be widely used in all types of cars across the world. This can be reused as tread everywhere and hence this investment would never go waste.

The others cannot come under final goods because,

• Though, an airline purchasing ten aircraft would be useful for passengers, it is still luxurious investment considering that there are many transportation vehicles that would be by majority of population across the world.

• A restaurant chain buying 100 gallons of ice cream is just going to help a short term or temporary needs for people to consume. Moreover, ice creams are not pressing needs like basic foods for everyday needs.

• ESPN’s purchase of computer technology is a need for entertainment and it is ‘nice to have’ facility for people and hence it is not considered a wise investment.

• Though farmer buying horse for ranch is an useful utility for farming and environmental needs, it is not considered as an efficient utility no more in the current fast paced technological world. Farmers now a days use tractors for efficient and faster way of producing farm products. Moreover, with the recent adept of animal protection act, it is no more a choice to hurt the animals for our production needs.

Answer 2

Answer:

like the one with cars makes logic sense beacause they are buying tires so they can use them on other cars they know how to put them on

Explanation:

like they need tires so they dont run out and they keep those new!! one in storage so that they stay fresh and when people need new tires they call them and get a aappointment and get some new good tires!