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Giving reasons, classify the following into intermediate and final goods :

(i) Machines purchased by a dealer of machines.
(ii) A car purchased by a house hold.

Class XII
National income


Intermediate good:- it is a good that is semi finished or it can be used further. so the machines purchased by a dealer of machines is a intermediate good.

Final goods:-the final goods are made out of the intermediate good wher the counsumer consume final goods, ultimately after its use it goes into dump yard ! 
so the car purchased by a household is a final good
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