Which of the Following Expenditures Is for an Intermediate Good

question 176

Multiple Choice

Which of the following expenditures is for an intermediate good?

• A) The government buys new tires for its military vehicles.
• B) A U.S. tire firm sells new tires to Canada.
• C) General Motors buys new tires to put on the cars it's building.
• D) You buy new tires for your used car.

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Definitions:

Opportunity Cost

The drawback of dismissing the next superior alternative during the decision process.

Real-Life Situations

Scenarios or events that occur outside theoretical or simulated environments, involving genuine contexts and conditions.

Economists

Professionals who study, develop, and apply theories and concepts from economics and write about economic policy.

Labor Time

The amount of time workers spend producing goods or delivering services.