The Main Difference Between a Final Consumer and an Intermediate

question 88

Multiple Choice

The main difference between a final consumer and an intermediate consumer is that

• A)the intermediate consumer purchases finished products, whereas the final consumer buys only raw materials.
• B)intermediate consumers buy raw materials and sell finished products to final consumers, who use them.
• C)final consumers make more purchases than the intermediate consumers.
• D)unlike final consumers, intermediate consumers provide monetary benefits to organizations by purchasing their products.
• E)final consumers tend to have more bargaining power than intermediate consumers.

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Definitions:

Price Level

The mean of current prices for all goods and services created within the economy.

Rate of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a given period.

Lagging Economic Indicator

Refers to statistics that tend to change after the economy has already begun to follow a particular trend, and are used to confirm patterns seen in leading indicators.

Unemployment Rate

The proportion of the workforce that is unemployed and actively looking for work.