Which of the following goods is an intermediate good?
A)lettuce that a restaurant buys to put on sandwiches
B)tires that a car company buys to put on the cars it produces
C)a television set that Chi-Mai buys to put in her college dorm room
D)a and b
E)b and c

Question

Quizplus · Accepted Answer

Intermediate goods are those used in the production of final goods. Both lettuce for sandwiches and tires for cars are used in producing final products (meals and cars, respectively).

Which of the Following Goods Is an Intermediate Good