Question

This is an example of intermediate good:

• A. Watch
• B. Chip
• C. Laptop
• D. Mobile phone

Hint:

Intermediate goods are used to produce other goods, while final goods are purchased for direct use by consumers.

Answer 1

The Correct Option is B

Step 1: Understand the question.
We must pick the example of an intermediate good from the list.

Step 2: Two kinds of goods.
Final goods are ready for the customer to use directly. Intermediate goods are used as inputs to make other goods.

Step 3: How to tell them apart.
Ask, is this item the finished product a buyer uses, or is it a part that goes inside another product? If it goes inside, it is intermediate.

Step 4: Check each option.
A watch, a laptop, and a mobile phone are all finished products that customers buy and use as they are.

Step 5: Find the input good.
A chip is an electronic part that is fitted inside laptops and phones to make them work. So it is used to produce other goods.

Step 6: Final answer.
The intermediate good is the chip.
\[ \boxed{\text{Chip}} \]