An example of an intermediate good would be
A) lumber used by a consumer to build a fence in his or her yard.
B) pencils purchased by a restaurant to be used to take orders.
C) a new stove purchased by a consumer.
D) an airplane purchased by the government.
E) Social Security payments made by the government.

Question

Quizplus · Accepted Answer

An intermediate good is a product that is purchased by a business for use in producing other goods or services. In the case of pencils purchased by a restaurant, they are used to take orders (a service) and are not sold directly to consumers. Lumber, a stove, an airplane, and Social Security payments are all either final goods or not goods at all.

An Example of an Intermediate Good Would Be