Asked by Heather Hernandez on Jun 13, 2024
Verified
Which of the following is an example of an intermediate good?
A) Sugar bought by a bakery
B) Sugar bought by a family
C) Furniture bought by a family
D) Burgers bought at a restaurant
E) Medicines bought at a pharmacy
Intermediate Good
A product used to produce a final good or finished product, not sold directly to consumers.
Bakery
A place where bread, cakes, cookies, and other bakery products are made or sold.
- Ascertain and separate the characteristics of final goods from those of intermediate goods.
Verified Answer
DB
Dingus BenningtonJun 13, 2024
Final Answer :
A
Explanation :
An intermediate good is a good that is used in the production of another good, rather than being sold directly to consumers. Sugar bought by a bakery is used to produce baked goods, so it is an intermediate good. Sugar bought by a family, furniture bought by a family, burgers bought at a restaurant, and medicines bought at a pharmacy are all final goods because they are sold directly to consumers.
Learning Objectives
- Ascertain and separate the characteristics of final goods from those of intermediate goods.