Which of the Following Goods Is an Intermediate Good

question 31

Multiple Choice

Which of the following goods is an intermediate good?

• A)lettuce that a restaurant buys to put on sandwiches
• B)tires that a car company buys to put on the cars it produces
• C)a television set that Chi-Mai buys to put in her college dorm room
• D)a and b
• E)b and c

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Convertible Bonds

Corporate bonds that have a provision that they may be converted to a designated number of shares or to a designated value of the corporation’s stock.

Face Value

The dollar amount written on a note; it is the same as the amount borrowed, or the principal. With regard to corporate and government bonds, the amount that will be paid to the holder when a bond is redeemed at maturity.

Common Stock

The usual type of stock issued by a corporation, often with different rights compared to preferred stock.