Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

In the production of sugar, sugarcane is ______________.

Options:

A Final good

A Capital good

An intermediate good

A Consumer good

Correct Answer:

An intermediate good

Explanation:

The correct answer is option (3) : An intermediate good

Intermediate goods are those used in the production process to create other goods or services. Sugarcane, in this case, is processed to produce sugar, which is then sold as a final consumer good.