The difference between a final good and an intermediate good is that:
A) final goods are not counted as part of GDP.
B) intermediate goods are of lower quality than final goods.
C) an intermediate good is sold for use as a component in a final good.
D) a final good is sold for use as a component of an intermediate good.

Question

Quizplus · Accepted Answer

An intermediate good is a good that is used as a component in the production of a final good. On the other hand, a final good is a good that is purchased by the end consumer and is not used as a component for further production. Therefore, choice C is the correct answer.

The Difference Between a Final Good and an Intermediate Good