Which of the following is considered a final good or service?
A) An airline ticket purchased to go on a business trip
B) The flour used by a baker to make bread
C) The bread purchased by a sub shop to make sandwiches
D) The steel used to make a car

Question

Quizplus · Accepted Answer

An airline ticket purchased for a business trip is a final service as it is consumed by the ultimate user or consumer, in this case, the person who is taking the flight.

Answer: C 
 The bread purchased by a sub shop to make sandwiches is an intermediate good as it is not consumed by the final user or consumer but is rather used as an input in the production of another product.

Answer: D 
 The steel used to make a car is an intermediate good as it is not consumed by the final user or consumer but is rather used as an input in the production of another product.

Which of the Following Is Considered a Final Good or Service