Which of the following is the best example of an intermediate good? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A new set of tires on your car b A table bought by a restaurant с Lettuce bought by a restaurant d Coffee beans bought by a household
Which of the following is the best example of an intermediate good? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A new set of tires on your car b A table bought by a restaurant с Lettuce bought by a restaurant d Coffee beans bought by a household
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 10CQ
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Question
Transcribed Image Text:**Question:**
Which of the following is the best example of an intermediate good?
**Options:**
a) A new set of tires on your car
b) A table bought by a restaurant
c) Lettuce bought by a restaurant
d) Coffee beans bought by a household
**Explanation:**
This multiple-choice question is designed to test your understanding of what constitutes an intermediate good. Intermediate goods are products utilized in the production process to produce a final good or finished product. These goods are not counted in the final output to avoid double counting.
When analyzing the options:
- Option (a) "A new set of tires on your car" refers to a consumer good, as it is intended for final use.
- Option (b) "A table bought by a restaurant" is also intended for final use in providing services.
- Option (c) "Lettuce bought by a restaurant" can be considered an intermediate good because it is used in the preparation of dishes which are the final products sold by the restaurant.
- Option (d) "Coffee beans bought by a household" is likewise intended for final personal consumption.
Therefore, the best example of an intermediate good from the given options is **option (c), Lettuce bought by a restaurant**.
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