What Is the Difference Between an Intermediate Good and a Final

question 96

Multiple Choice

What is the difference between an intermediate good and a final good?

• A) Final goods are adjusted for depreciation,intermediate goods are not.
• B) Final goods are adjusted for changes in the value of the dollar,intermediate goods are not.
• C) In GDP calculations,final goods are counted as consumption spending,intermediate goods are counted as private investment spending.
• D) There is no meaningful difference between them.
• E) Final goods are finished and ready for sale;intermediate goods require further processing.

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Definitions:

Tiling Grout

Tiling grout is a dense fluid used to fill gaps or joints between tiles, often for reinforcement, sealing, or decoration.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales volume, indicating the proportion of fixed costs in its cost structure.

Tiling Grout

A dense fluid which is used to fill gaps or used as reinforcement in existing structures between tiles during installation.

Contribution Margin Ratio

The proportion of revenue from each dollar of sales that goes towards covering fixed expenses and creating profit.