Reena stiches clothes in her house and tries to help the family in generating additional income. The cloth which she buys for the same will be considered as which of the following options?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: Intermediate good
An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Cloth which Reena buys is used for making clothes thus, will be considered as an intermediate good.