Q. Consider the following statements regarding types of goods:

1. Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called capital goods.
2. The goods that are of durable character which are used in the production process are consumer goods.

Which of the above is / are correct?
Answer: None of the above
Notes: Neither of the statements is correct. Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called 'final goods'. The goods that are of durable character which are used in the production process are capital goods.

This question is part of 40000+ MCQs GKToday PCS Mock Tests Series in GKToday Android app. Question Number: 86 in GKToday PCS Mock Test - 234 in above course in App.