Question

This is an example of intermediate good:

• A. Watch
• B. Chip
• C. Laptop
• D. Mobile phone

Hint:

Intermediate goods are used to produce other goods, while final goods are purchased for direct use by consumers.

Answer 1

The Correct Option is B

Concept: Goods are generally classified into final goods and intermediate goods. Intermediate goods are used in the production of other goods and services.

Step 1: Understand intermediate goods. Intermediate goods are products that are not intended for direct consumption by consumers. Instead, they serve as inputs in the production process. Examples include steel used in cars, flour used in bread production, and electronic chips used in electronic devices.

Step 2: Analyze the options. A watch is generally purchased and used directly by consumers. A laptop is a finished product ready for consumer use. A mobile phone is also a final good. A chip is a component used in manufacturing electronic products such as computers, mobile phones, and other devices.

Step 3: Apply the definition. Since a chip is used in producing final electronic products, it is classified as an intermediate good.

Step 4: Conclusion. Therefore, the correct answer is

chip.