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Which of the following is an INTERMEDIATE good rather than a final good?
ABread bought by a household for consumption
BFlour bought by a bakery for making bread to sell
CA new car bought by a consumer
DA washing machine bought by a household
Answer & Solution
Correct answer: B. Flour bought by a bakery for making bread to sell
Flour used by a bakery is intermediate — its value is embedded in the sold bread. Counting both would double-count. Household-purchased bread, cars, and white goods are final consumption.
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