Which of the following is an example of an intermediate good?
A)The flowers that Mr.Grover buys at a local nursery
B)The flowers that Timmy picks from a neighbor's garden and brings to Mrs.Grover
C)The flour that Grandma buys to bake a birthday cake
D)The flour that Joe buys so that he can eat pizza three nights a week
E)The flour that Amy orders each month for the bakery she manages

Question

Quizplus · Accepted Answer

An intermediate good is a good that is used in the production of a final good. In this case, the flour that Amy orders each month for the bakery she manages is used in the production of baked goods, which are the final goods. The other options (A, B, C, D) are all examples of final goods, as they are bought for personal consumption or use rather than for production purposes.

Which of the Following Is an Example of an Intermediate