Which of these goods is an intermediate good that would NOT be counted in GDP in the year it is produced?
A) a tractor
B) wood used for making furniture
C) an oven for installation in a bakery
D) flour sold in a grocery store

Question

Quizplus · Accepted Answer

Intermediate goods are goods used for the production of other goods and are not sold to the final consumer. Wood used for making furniture is an intermediate good as it is used in the production of furniture, which is a final good. However, it would not be counted in GDP in the year it is produced as it is not sold to the final consumer.

Which of These Goods Is an Intermediate Good That Would