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Homework answers / question archive / Which of the following is an example of an intermediate good or service? A
Which of the following is an example of an intermediate good or service?
A. Sarah bought a Sony HDTV,
B. Mike bought Puma shoes,
C. Air Canada buys Boeing aircrafts,
D. Samsung buys compressors for manufacturing refrigerators.
The correct option is D. Samsung buys compressors for manufacturing refrigerators.
Explanation:
An intermediate good is an item sold by a seller to another seller who uses this item as a raw material in a specific commodity's production process. Such goods are also known as semi-final commodities. Here, Samsung purchases compressors, not for the final consumption, as it is used to manufacture refrigerators.