Which example illustrates an intermediate good?
A) stocks and bonds purchased by a business executive
B) a cellular telephone purchased by a university student
C) a wedding ring purchased by an engineer for his fiancée
D) tires General Motors purchased from Goodyear for new electric cars

Question

Quizplus · Accepted Answer

Tires purchased by General Motors from Goodyear for their electric cars are an example of an intermediate good because they are used in the production of the final product (the electric car) but are not directly sold to consumers. Choices A, B, and C are all final goods because they are directly purchased by consumers for their own personal use.

Which Example Illustrates an Intermediate Good