Suppose that U.S Metals sells steel to U.S Auto, which uses the steel to manufacture a car that is sold to a college student for personal use. In this case, steel is an example of _____ good, and the car is an example of _____ good.
A) a capital; an intermediate
B) an intermediate; a final
C) a final; an intermediate
D) an intermediate; a capital

Question

Quizplus · Accepted Answer

Steel is an intermediate good because it is used in the production of another good (the car), while the car is a final good because it is sold to the end user for consumption.

Suppose That U