Which of the following is an example of an intermediate good?
A) the dough you buy to fix yourself a pizza for dinner
B) the chocolate you buy to make yourself some cookies
C) the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to
D) lumber you buy to build a house for your dog

Question

Quizplus · Accepted Answer

An intermediate good is a product that is used to produce final goods. In this case, the pizza sauce is being used to make pizzas to sell, which is a final good. The other options (dough, chocolate, lumber) are being used for personal use and are therefore not intermediate goods.

Which of the Following Is an Example of an Intermediate