An Example of an Intermediate Good Would Be

question 61

Multiple Choice

An example of an intermediate good would be:

• A) the rice used to make Chex cereal.
• B) a bag of Uncle Ben's rice sold to consumers.
• C) a bag of Quaker's rice cakes sold to consumers.
• D) All of these are intermediate goods

---

Definitions:

Willingness to Pay

The maximum amount a consumer is ready to spend for a good or service.

Surplus

The situation where the quantity supplied of a product exceeds the quantity demanded at a given price.

Negative Externality

An economic situation where a third party is negatively affected by the actions of others, typically not reflected in the cost of those actions, such as pollution.

Common-Resource Problem

A dilemma in the management of resources that are available to all but are susceptible to overuse and depletion because they are not excludable.