Which of the following is an intermediate good?
A) Tomatoes grown in your garden that you use to make salsa.
B) Tomatoes you buy at a local farmer's stand that you use to make salsa.
C) Tomatoes sold in the grocery store that you use to make salsa.
D) Tomatoes sold to a factory and used in the production of spaghetti sauce.

Question

Quizplus · Accepted Answer

An intermediate good is a product that is used as an input in the production of final goods. In this case, the tomatoes sold to a factory are being used as an input in the production of spaghetti sauce, which is a final good. The other options involve the use of tomatoes in the production of a good for personal consumption (salsa), which would make them a final good.

Which of the Following Is an Intermediate Good