Multiple choice

Demand for intermediate consumption arises in

  1. household consumers

  2. government enterprises only

  3. corporate enterprises only

  4. all producing sectors of the economy
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Demand for intermediate consumption (raw materials, components, services used in production) arises in all producing sectors of the economy - agriculture, manufacturing, and services. Every producer needs inputs to create outputs. Household consumers are final consumers who don't use intermediate goods for production. Both government and corporate enterprises are only part of the producing sectors.

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