Which of the following is an intermediate good?
A) The rice used to make Chex cereal
B) A bag of Uncle Ben's rice sold to consumers
C) A bag of Quaker's rice cakes sold to consumers
D) All of these are intermediate goods.

Question

Quizplus · Accepted Answer

An intermediate good is a product that is used as an input in the production process of another good. In this case, the rice used to make Chex cereal is an intermediate good because it is not sold directly to consumers, but rather used in the production process of Chex cereal. Uncle Ben's rice and Quaker's rice cakes, on the other hand, are final goods that are sold directly to consumers.

Which of the Following Is an Intermediate Good