An example of an intermediate good would be a(n)
a. the used car you purchase.
b. the appliance you use to heat up your lunch…
c. the suit you purchased on Black Friday and wore for New Year’s Eve.
d. paper used in this edition of the textbook.

An intermediate good is a product that is used to produce a final good or service. In the context of the options provided, paper used in this edition of the textbook is an excellent example, as it is a component that contributes to the creation of the final product, which is the textbook itself. It’s not sold directly to consumers, reinforcing its role in the production chain.

Understanding intermediate goods, like paper, is crucial in recognizing how different sectors of the economy are interconnected. For example, the timber industry supplies paper manufacturers, who then distribute their products to publishers. This interconnectedness also plays a significant role in calculating GDP, as only final goods and services are included, while intermediate goods help track the production process indirectly.