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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

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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.

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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.