Question

A​ ______ is a final good and​ ______ is an intermediate good.

A.

new​ textbook; a used textbook

B.

new car bought by a​ student; a used SUV bought by a dealer

C.

tank of gasoline bought by​ you; jet fuel bought by Southwest Airlines   

D.

new iPhone bought by a​ student; a new computer bought by​ Wal-Mart

Answer 1

Option C

a tank of gasoline bought by you; jet fuel purchased by Southwest Airlines

A final good is used by the ultimate user and it does not sell the product. An intermediate good is used to make a new product.

The new textbook, new car, gasoline tank, new iphne are final goods used

goods are resold goods and not counted as final goods because these goods are already counted when it was new.

Fuel is used for airline service, so it is an intermediate good.