From the options given below identify the intermediate good/goods.
- Printer purchased by dealer for supplying in the school
- Car purchased by a cab driver
- Fruits and vegetables purchased by a shopkeeper
- Smart boards purchased by the University for teaching
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
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.
- Printer purchased by dealer for supplying in the school- considered as intermediate good as it is meant for resale to someone.
- Car purchased by a cab driver- considered as a capital good as it is used for producing services for the generation of income.
- Fruits and vegetables purchased by a shopkeeper - considered as intermediate good as it is meant for resale to the consumers.
- Smart boards purchased by the University for teaching - will be considered as final product as smart boards are bought for a long period of time and for investment purpose.