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Question : Which of the following is an example of an intermediate good?

 

Option 1: Bread purchased by a consumer

Option 2: Steel used in the construction of a building

Option 3: A laptop sold to a student

Option 4: A car purchased by a family


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: Steel used in the construction of a building


Solution : The correct answer is (b) Steel used in the construction of a building.

An intermediate good is a product that is used as an input or raw material in the production of another good or service. It is not intended for final consumption or directly sold to end consumers.

Steel used in the construction of a building is an example of an intermediate good. Steel is a material that is used in the construction industry as a primary input for building structures. It is not the final product itself but is used in the production process to create the final building structure.

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