An intermediate good would be:
A) a new boat to be used for vacations.
B) a lumber used to build a house.
C) payments to military personnel.
D) a professor's salary.

Question

Quizplus · Accepted Answer

An intermediate good is a type of good or raw material that is only partially processed and must be sold to other businesses or used in the production of final goods. Lumber used to build a house is an example of an intermediate good because it must be further processed and transformed in order to be used in the final product (the house). The other choices listed are not intermediate goods, as they are either already final products (a boat for vacations) or not related to the production of goods at all (payments to military personnel and a professor's salary).

An Intermediate Good Would Be