Asked by Saarthak Sharma on May 16, 2024

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Which of the following is an example of an intermediate good?

A) The flowers that Mr.Grover buys at a local nursery
B) The flowers that Timmy picks from a neighbor's garden and brings to Mrs.Grover
C) The flour that Grandma buys to bake a birthday cake
D) The flour that Joe buys so that he can eat pizza three nights a week
E) The flour that Amy orders each month for the bakery she manages

Intermediate Good

A product utilized in the manufacture of a final good or finished product, not sold directly to end consumers.

Local Nursery

A place or business that specializes in growing and selling plants and trees for gardening and landscaping within a local area.

Grandma

A familial term used to refer to the mother of one's parent, often associated with elder care, wisdom, and family traditions.

  • Recognize and differentiate between ultimate products and intermediary goods.
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Benjamin BustosMay 20, 2024
Final Answer :
E
Explanation :
An intermediate good is a good that is used in the production of a final good. In this case, the flour that Amy orders each month for the bakery she manages is used in the production of baked goods, which are the final goods. The other options (A, B, C, D) are all examples of final goods, as they are bought for personal consumption or use rather than for production purposes.