An Example of an Intermediate Good Would Be

question 87

Multiple Choice

An example of an intermediate good would be

• A) lumber used by a consumer to build a fence in his or her yard.
• B) pencils purchased by a restaurant to be used to take orders.
• C) a new stove purchased by a consumer.
• D) an airplane purchased by the government.
• E) Social Security payments made by the government.

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Definitions:

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life, useful for reducing taxable income by recognizing the asset's expense over several years.

Rental Income

Income earned from leasing out property or space to tenants.

Self-employment Income

Income generated from conducting business as an independent contractor, freelancer, or business owner, rather than as an employee.

Ordinary Income

Income earned from standard operations, including wages, salaries, tips, and interest, subject to regular taxation rates.