Which of the Following Is an Example of an Intermediate

question 153

Multiple Choice

Which of the following is an example of an intermediate good?

• A) the dough you buy to fix yourself a pizza for dinner
• B) the chocolate you buy to make yourself some cookies
• C) the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to
• D) lumber you buy to build a house for your dog

---

Definitions:

Government Expenditures

Financial spending by government agencies on goods, services, and public projects to fulfill their various roles and responsibilities.

Federal Tax Structure

The system by which the U.S. government finances its operations through the imposition of taxes on individuals, corporations, and other entities, including income tax, corporate tax, and sales tax.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income of the taxpayer, showing the percentage of income paid in taxes.

Regressive

Pertaining to a tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income individuals.