Question
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.
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.
Ask by Edwards Hamilton. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The paper used in the textbook is an intermediate good.
Solution
- An intermediate good is a product used to produce a final good.
- In this case, the paper used in producing the textbook is not sold directly to the end consumer.
- Therefore, it serves as an input in the production process, making it an intermediate good.
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Simplify this solution Extra Insights
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.
