Questions: Which of the following transactions represents the purchase of a final good? A. The purchase of coffee beans by Starbucks. B. Delta buys a new European - made jetliner. C. Apple computer buys computer processors from Intel. D. Your father buys a new John Deere riding lawn mower.

Which of the following transactions represents the purchase of a final good?
A. The purchase of coffee beans by Starbucks.
B. Delta buys a new European - made jetliner.
C. Apple computer buys computer processors from Intel.
D. Your father buys a new John Deere riding lawn mower.
Transcript text: Which of the following transactions represents the purchase of a final good? A. The purchase of coffee beans by Starbucks. B. Delta buys a new European - made jetliner. C. Apple computer buys computer processors from Intel. D. Your father buys a new John Deere riding lawn mower.
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Solution

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The answer is D: Your father buys a new John Deere riding lawn mower.

Explanation for each option:

A. The purchase of coffee beans by Starbucks - This is not the purchase of a final good. Coffee beans are considered an intermediate good for Starbucks because they are used to produce the final product, which is the coffee sold to customers.

B. Delta buys a new European-made jetliner - This transaction involves the purchase of a capital good, not a final good. A jetliner is used by Delta to provide airline services, which are the final goods sold to consumers.

C. Apple computer buys computer processors from Intel - This is also not the purchase of a final good. The processors are intermediate goods used in the production of Apple's final products, such as computers and smartphones.

D. Your father buys a new John Deere riding lawn mower - This is the purchase of a final good. The lawn mower is a finished product purchased by a consumer for personal use, not for further production or resale.

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