Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Coal used by a steel factory during the accounting year is a:

Options:

Complementary good

Intermediate good

Substitute good

Final good

Correct Answer:

Intermediate good

Explanation:

An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Metallurgical coal is an essential ingredient in the production of steel, one of the most widely used building materials on earth. As coal is an ingredient in the production of steel we consider it as an "Intermediate good".