Which of the following is considered as an intermediate good?

Seeds and fertilizers purchased by a farmer

Seeds and fertilizers purchased by a farmer

An intermediate good is a product used to produce a final good or finished product. Seeds and fertilizers are typically used in the production process by farmers to grow crops, which eventually become final goods (such as vegetables). In this case, seeds and fertilizers serve as intermediate goods.

• Mobile purchased by a student: This is a final good as it is directly consumed by the student for personal use, not used in further production.
• Car purchased by a household: Similar to the mobile, a car is a final good for personal use by the household, not directly involved in another production process.
• Vegetables purchased by households: These are also final goods consumed directly by households for their nutritional needs.