Which of the following is an intermediate good?Multiple Choicethe purchase of fuel for a 4x4 trip to Botswana.the purchase of netball uniforms by a netball team.the purchase of a pizza by a university student.the purchase of jogging shoes by a professor
Question
Which of the following is an intermediate good?Multiple Choicethe purchase of fuel for a 4x4 trip to Botswana.the purchase of netball uniforms by a netball team.the purchase of a pizza by a university student.the purchase of jogging shoes by a professor
Solution
The purchase of fuel for a 4x4 trip to Botswana is an intermediate good.
Here's why:
Intermediate goods are goods used in the production of other goods or services. In this case, the fuel is used to power the 4x4 vehicle for the trip to Botswana. It's not the final product or service being consumed, but it's a necessary component to make the trip possible.
The other options listed - netball uniforms, a pizza, and jogging shoes - are all final goods. They're being purchased for direct use or consumption. The netball team will wear the uniforms, the student will eat the pizza, and the professor will wear the jogging shoes. None of these items will be used to produce another good or service.
Similar Questions
Which of the following goods are usually intermediate goods and which are usually final goods? a. Running shoes: b. Cotton fibers: c. Watches: d. Textbooks: e. Coal: f. Sunscreen lotion: g. Lumber:
Any goods and services that a firm buys from other firms to use in its production process are classified as _____ inputs.Multiple choice question.intermediateinterposedintermediary
In economic terms, what do we mean by ‘Intermediate Goods’ ?Goods sold between industries for resale or production of other goods. Goods in transit before reaching the consumers. Price of goods without GST. Fixed assets used by manufacturers.
Which one of the following is an intermediate expenditure? [1](a) Expenditure on maintenance by a firm(b) Purchase of furniture by a firm(c) Purchase of tractor by a farmer
Refrigerator purchased by a confectionery shop is an example of:(a) Intermediate good(b) Final good and Capital good(c) Final good
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.