An example of an intermediate good is:
A) wages paid to an employee.
B) steel purchased by aircraft manufacturers.
C) vegetables purchased for your dinner.
D) electric bills for your house.

Question

Quizplus · Accepted Answer

Intermediate goods are goods that are used as inputs in the production process of a final good. Steel purchased by aircraft manufacturers is an intermediate good because it is used in the production process of airplanes, which is a final good. Choices A, C, and D are not intermediate goods because they are not used as inputs in the production process of a final good.

An Example of an Intermediate Good Is