Which of the following is the best example of an intermediate good?
A)A new highway
B)The commission that goes to a real estate agent
C)Wax purchased by a candle company
D)Wheat sold to a foreign country

Question

Quizplus · Accepted Answer

An intermediate good is a product used to make another product. In this case, the wax is being used by the candle company to make candles, which is the final product. The other options either represent a final product (a new highway) or a service rather than a product (the commission going to a real estate agent). The wheat sold to a foreign country could be an intermediate good if it was being used to make another product, but this is not specified in the question.

Which of the Following Is the Best Example of an Intermediate