Multiple choice

The goods which help in the consumption of other goods are

  1. consumer goods

  2. producer goods

  3. free goods

  4. durable goods
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (1) is incorrect: Consumer goods are the end result of production and manufacturing, and are what a consumer will see on the store shelf.  Option (2) is correct: Producer goods are the raw materials or consumable items for the production of other goods. Consumer goods are ready to use goods and are directly used by consumers. Free goods do not have exchange value. Durable goods are used for a long time.

Option (3) is incorrect:  Free goods are available in as great a quantity as desired with zero opportunity cost to the society. Option (4) is incorrect: Durable goods are a category of consumer products that do not need to be purchased frequently because they are made to last for a long time.

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