A Farmer Produces Carrots and Sells Them to Fresh Juice

question 145

Multiple Choice

A farmer produces carrots and sells them to Fresh Juice, which makes carrot juice. The carrots produced by the farmer are called

• A)inventory goods.
• B)transitory goods.
• C)final goods.
• D)intermediate goods.

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Definitions:

Opportunity Cost

The penalty of missing potential gains from other paths by choosing a certain option.

College Expenses

The costs associated with attending college, including tuition, fees, books, and living expenses.

Lodging

Accommodation in hotels, motels, or any other establishment that provides a place to stay for a short period.

Rational Choice

A theory in economics and sociology that suggests individuals choose the option that provides the highest level of satisfaction, assuming the availability of information and a clear preference set.