Question

Indicate whether each of the following is a final​ good, an intermediate​ good, or neither.

1. Coffee beans purchased by a coffee shop _________ (Final good / Intermediate good / Neither)
2. One share of Google stock _________ (Final good / Intermediate good / Neither)
3. A new​ pick-up truck purchased by a consumer __________ (Intermediate good / Final good / Neither)

Answer 1

1. Coffee beans purchased by a coffee shop - Intermediate good

2. One share of Google stock - Neither

3. A new​ pick-up truck purchased by a consumer - Final good

Step-by-step explanation:

“Final goods” refer to the goods that are “ready” for consumption or use. It is the finished product or the final product. For example: microwave oven is a final good as the consumer needs to just use it. He doesn’t have to prepare anything for that.

“Intermediate goods” are the goods that are used to make the final product. It is also known as consumer food. For example: If milk is used to prepare some sweet, milk is an intermediate product.

In the given example, “coffee beans” are intermediate goods as it cannot be consumed directly but used to make coffee. “One share of google stock” is neither a final not an intermediate good. “A new pick-up truck purchased” is the final good as it can be used directly by the consumer.