Which of the following is not an intermediate good?
A)Tires purchased by Ford to put on their new Explorers
B)Tires sold by Goodyear to put on your Explorer
C)Tomatoes used by Ortega to make their salsa
D)All of these are intermediate goods.

Question

Quizplus · Accepted Answer

An intermediate good is a product that is used to produce another product. In this case, A (tires purchased by Ford) and C (tomatoes used by Ortega) are clearly intermediate goods because they are used in the production of another product. Option B, on the other hand, is not an intermediate good because it is sold directly to consumers and not used as a component in another product. Therefore, the answer is B.

Which of the Following Is Not an Intermediate Good