An example of an intermediate good would be:

A) Lumber used by a consumer to build a fence in his or her yard

B) An airplane purchased by the government

C) Pencils purchased by a restaurant to be use to take orders

D) A new stoce purchaded by the government

E) None of the above

Solutions

Expert Solution

Option C ie Pencils purchased by a restaurant to be use to take orders.

Intermediate goods and services are those purchased for additional processing and resale. Pencils purchased by restaurant to take orders is intermediate good. The final good produced is the food served. GDP includes only value of final goods and services produced.

Option A is incorrect as lumber is a final good used for personal consumption by consumer. Option B is incorrect as airplane purchased by government is final good that will be used by government.Option D is wrong as new stoce produced by government is a final good purchased by government.

Rahul Sunny answered 1 year ago

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