Which of the Following Is an Intermediate Good

question 140

Multiple Choice

Which of the following is an intermediate good?

• A) The purchase of gasoline for a ski trip to Colorado.
• B) The purchase of baseball uniforms by a professional baseball team.
• C) The purchase of a pizza by a college student.
• D) The purchase of jogging shoes by a professor.

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Definitions:

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Capital Budget

An estimate of the major capital and investment expenditures over a period, and the means of financing them.

Cost of Capital

The cost of a company's funds (both debt and equity), representing the rate of return that the company must earn on its investment projects to maintain its market value.

Investment Opportunities

Chances or avenues available to investors to put their money into vehicles with the potential for generating profit.