Which of the following are intermediate goods?
(A) Milk purchased by a household
(B) Sugar purchased by a restaurant
(C) Furniture purchased by school
(D) Chalk and duster purchased by school
(E) Printer purchased by a lawyer
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
THE CORRECT ANSWER IS OPTION 2: (B), (D) only
An intermediate good is a product used to produce a final good or finished product. They are mostly used as raw material or inputs for production of other commodities.
(A) Milk purchased by a household - considered as a final product, as used for the consumption purpose and direct satisfaction of wants.
(B) Sugar purchased by a restaurant - considered as an intermediate product, as sugar will be used as raw material for making deserts etc.
(C) Furniture purchased by school - considered as a final product, as it is purchased for the purpose of investment.
(D) Chalk and duster purchased by school - considered as an intermediate product, as it is purchased for providing educational services in the school
(E) Printer purchased by a lawyer - considered as a final product, as it is purchased for the purpose of investment.