Question

A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are calleda. inventory goods.b. transitory goods.c. final goods.d. intermediate goods.

Answer 1

Letter d is correct. Intermediate goods.

Step-by-step explanation:

Intermediate goods are those that correspond to the inputs or manufactured goods that are used to give rise to the production of a final good.

Any good that is acquired for the production of another good is considered an intermediate good. Its use occurs by incorporation into a good, or destruction, which is when they are destroyed for a new good to be produced.

Some examples of intermediate goods are: electronic components of a computer, bread baking, production equipment, tools used to produce another good, a car engine and others.