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Multiple Choice
An office desk is an example of:
A
a capital good
B
a natural resource
C
an intermediate good
D
a consumer good
Verified step by step guidance
1
Step 1: Understand the definitions of the terms given in the options. A capital good is a man-made good used to produce other goods or services, such as machinery, tools, or equipment.
Step 2: A natural resource refers to materials or substances that occur naturally in the environment, like water, minerals, or forests.
Step 3: An intermediate good is a product used as an input in the production of a final good or service, such as parts or raw materials that are transformed during production.
Step 4: A consumer good is a finished product that is purchased by consumers for personal use or consumption, like clothing or food.
Step 5: Since an office desk is a man-made item used in the production process (e.g., facilitating work), it fits the definition of a capital good rather than a natural resource, intermediate good, or consumer good.