Question

An example of an intermediate good is:

a) A new computer sold to a secondary school student.
b) A new car sold to Paul.
c) Flour sold to a bakery shop for the production of bread.
d) Drinks and sandwiches sold in a concert.

Answer 1

The correct answer is c) Flour sold to a bakery shop for the production of bread, as it represents an intermediate good used by the bakery to produce another good, unlike the other options that are final goods and services sold directly to consumers.

Step-by-step explanation:

An intermediate good is an output that is provided to other businesses at an intermediate stage of production rather than being sold directly to the final users, which contrasts with a final good and service. The correct answer to the student's question would be c) Flour sold to a bakery shop for the production of bread.

Flour is an intermediate good because it is used by the bakery to produce another good, bread, which is then sold to consumers. This is different from the other options provided, such as a computer sold to a student, a new car for personal use, or drinks and sandwiches sold at a concert, which are examples of final goods and services that are purchased by consumers to satisfy their wants and needs.