Which of the following goods is an intermediate good?
A) lettuce that a restaurant buys to put on sandwiches
B) tires that a car company buys to put on the cars it produces
C) a television set that Mai buys to put in her college dorm room
D) a and b
E) b and c

Question

Quizplus · Accepted Answer

Intermediate goods are goods that are used to produce other goods and not for final consumption. Lettuce bought by a restaurant to make sandwiches and tires bought by a car company to produce cars are examples of intermediate goods, as they are used in the production of final goods (sandwiches and cars, respectively).

Which of the Following Goods Is an Intermediate Good