O Levels Economics (2281)•2281/11/M/J/20

Explanation
Consumer goods are items bought for personal use, not production.
Steps:
- Recall that consumer goods satisfy personal needs, unlike capital or intermediate goods used in business.
- Examine each option to determine if the purchase is for the farm owner's personal consumption or farm operations.
- Eliminate options involving farm production inputs.
- Identify the option for non-business personal use.
Why A is correct:
- A television is a durable consumer good purchased for personal entertainment, per the economic definition of final goods for household use.
Why the others are wrong:
- B: Additional land is a capital good to expand farm production.
- C: Fertilizer is an intermediate good used in crop production.
- D: Farming equipment is a capital good for business operations.
Final answer: A
Topic: Households
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