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Q.

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


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a

Woven basket

b

Chair production from wood

c

Wheat flour

d

Biscuits 

answer is C.

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Detailed Solution

Wheat flour is an example of intermediate goods.
Products like wheat and wheat flour, in this example intermediate commodities as oppressed to final goods. Producing finished products and services consumes intermediate entities. All goods are already included in the value of the final goods. Thus, the price of the flour is already included in the price of the biscuits (the finished good), which is Rs 80. (Rs 25). The worth of every other intermediary rate interest would also have been included.
 
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