Which of the following is an example of an intermediate good?
A) the tortillas you buy to make yourself a burrito for lunch
B) the blueberries you buy to bake yourself some muffins
C) the chocolate chips you purchase to make cookies to sell at a bake sale for your kids' school
D) the lumber you buy to build a house for your dog

Question

Quizplus · Accepted Answer

An intermediate good is a good that is used to produce another good. In this case, the chocolate chips are being used to make cookies to sell at a bake sale, so they are an intermediate good. The tortillas, blueberries, and lumber are all final goods - they are being consumed directly by the individual or animal who purchased them.

Which of the Following Is an Example of an Intermediate