Which of the following is an example of an intermediate good?
A)a pair of jeans sold by a clothing retailer
B)cloth sold to a suit manufacturer
C)a share of Wal-Mart stock
D)a used Ford Mustang sold from one neighbor to another

Question

Which of the following is an example of an intermediate good?
A)​a pair of jeans sold by a clothing retailer
B)​cloth sold to a suit manufacturer
C)​a share of Wal-Mart stock
D)​a used Ford Mustang sold from one neighbor to another

Quizplus · Accepted Answer

An intermediate good is a good that is used as a component or input in the production of another good. Cloth sold to a suit manufacturer is an example of an intermediate good because it is used to make the final product (the suit). The other options are not intermediate goods because a pair of jeans sold by a clothing retailer, a share of Walmart stock, and a used Ford Mustang are all considered final goods that are sold directly to consumers, rather than being used as inputs in the production process.

Which of the Following Is an Example of an Intermediate