An example of an intermediate good would be
A)a new car.
B)a used car.
C)the rims on a new car.
D)new rims to replace old rims on a used car.

Question

Quizplus · Accepted Answer

Intermediate goods are goods that are used by firms as inputs in the production of final goods. The rims on a new car would be considered an intermediate good since they are used in the production of the final good (the new car). A new car (option A) would be considered a final good since it is sold directly to consumers. A used car (option B) is also a final good, as it has already been sold to a consumer and is no longer being used in the production process. Option D would also be an intermediate good, as the new rims are being used in the production of a final good (the used car being repaired or upgraded).

An Example of an Intermediate Good Would Be