Question

Assertion (A): The cement purchased by the constructor is considered an intermediate good.

Reason (R): The cement is used for the construction of the building to be sold to the consumer.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A). 

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

• Assertion (A) is true, but Reason (R) is false. 

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A). 

Explanation:

Intermediate products are goods that are used in the manufacture of final goods.