An intermediate good is a good that is
A) neither normal nor inferior.
B) used as an input.
C) a stand-in for all goods.
D) is tangible good that includes substantial services.

Question

Quizplus · Accepted Answer

An intermediate good is a good that is used as an input in the production of final goods and services. It is not meant for final consumption by individuals or households. Examples of intermediate goods include raw materials, components, and other unfinished goods that are used in the production process. Therefore, option B is the correct answer. Option A is not related to the concept of intermediate goods. Option C is incorrect because an intermediate good cannot be a stand-in for all goods. Option D is incorrect because an intermediate good may or may not include services, and it does not have to be tangible.

An Intermediate Good Is a Good That Is