Distinguish between final goods and intermediate goods. Give suitable examples.

OR

If in a locality, a new park is developed by the municipal corporation, it will have externalities, both positive and negative. State one example each of both types of externalities with reason.

Final goods are goods which can be sued for final consumption or investment. For example, if a household purchases food items for consumption, it will be a final good.

An intermediate good is a good which is to be used in further production or for resale. For example, a tea seller purchases milk.

OR

If in a locality, a new park is developed by the municipal corporation, it

will have externalities, both positive and negative.

The positive externality is that it would be a help to reduce pollution and would help to increase the efficiency and health of the people.

The negative externality is that it can become an element of anti-social crimes. It can lead to insecurity among the people.