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Which out of the following are intermediate goods ?

(A) Milk purchased by a household

(B) Sugar purchased by a restaurant

(C) Furniture purchased by school

(D) Chalk and duster purchased by school

(E) Printer purchased by a lawyer

Choose the correct answer from the options given below :

Solution

Correct Option: 2

Intermediate goods are used up in producing other goods and services within the same year. Sugar purchased by a restaurant (B) and chalk and duster purchased by a school (D) are consumed in production. Milk by household is final consumption. Furniture by school and printer by lawyer are capital goods, i.e., final goods.

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