A computer chip sold to Dell is an example of:
A) a final good.
B) an intermediate good.
C) a service.
D) an inferior good.

Question

Quizplus · Accepted Answer

A computer chip sold to Dell is an intermediate good, as it is a component that is used in the production of Dell's final product (computers). Final goods are goods that are purchased by the end consumer for consumption or use. Services are intangible activities provided by one party to another. Finally, an inferior good is a type of good for which demand decreases as income increases (i.e. cheaper alternatives are sought as income rises).

A Computer Chip Sold to Dell Is an Example Of