Which of the following is an example of an intermediate good?
A)stocks and bonds purchased by a business executive
B)a cellular telephone purchased by a college 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

Intermediate goods are goods that are used in the production of final goods. Tires purchased by General Motors for their new electric cars are an example of an intermediate good. Options A, B, and C are not intermediate goods as they are being consumed for personal use rather than being used in the production process of a final good.

Which of the Following Is an Example of an Intermediate