Which of the following is an example of an intermediate good?
A)a pair of jeans sold by a clothing retailer
B)cloth sold to a suit manufacturer
C)a used Ford Mustang sold from one neighbour to another
D)a share of Walmart stock

Question

Quizplus · Accepted Answer

An intermediate good is a product that is used in the production of another good, rather than being sold directly to consumers. Cloth sold to a suit manufacturer is an example of an intermediate good as it is used to produce a final product (the suit) that is sold to consumers. A pair of jeans sold by a clothing retailer is a final good as it is sold directly to consumers. A used Ford Mustang sold from one neighbour to another is also a final good as it has already been produced and sold once. A share of Walmart stock is not a good at all, but rather a financial asset.

Which of the Following Is an Example of an Intermediate