Question

Please match the hypothetical scenarios with the correct type of good.

Answer 1

Pierre produces cheese in France and ships it to his sister living in Canada, who then sells it in her local bakery. - Consumption goods and services, export goods and services, real estate.

In her capacity as an FBI agent, Jean purchases a new vehicle for use by the agency to track missing persons. - Government goods and services

Wanda purchases six new sewing machines for her tailoring business, which she hopes will increase the number of custom alterations she can perform each week. - Capital goods

Explanation:

Goods and services in Economics are the goods which are used by the consumers in the economy to satisfy the needs and the demands of the consumers in the economy.

These goods can be of different types like capital goods and consumer goods. The capital goods are of capital nature which is to be used for further production by the producer and they can be for the purpose of direct consumption also by the consumer and the clients.