ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Hey Shaina, fertiliser purchased by a farmer is an intermediate good as these are not readily consumed as final consumption by the consumers. These goods are used only as inputs/raw materials in the production process.

Detailed explanation-2: -c) Fertilizers purchased by a farmer: It is an intermediate good since fertilizers is used as a raw material in agriculture.

Detailed explanation-3: -Intermediate goods are those goods which are used in the production of final goods. Some examples of intermediate goods are wheat, soil, crude oil, steel, sugar etc.

Detailed explanation-4: -Ammonium sulfate, ammonium phosphate, ammonium nitrate, urea, ammonium chloride, and other chemical fertilizers are examples.

Detailed explanation-5: -For example, sugar can be used as an intermediate good for making sweets but when sold to customers directly for household usage, it becomes a final good. In short, if the ultimate usage of a product is a further investment or direct consumption then it is a final product.