Which of the following goods are used as raw materials or inputs and are transformed in the production of other goods?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Intermediate goods
Intermediate goods are raw materials or inputs used up in making other goods, like steel sheets in cars.
Capital goods help production but are not transformed, and consumer goods and durables go to final use.
NCERT (2026-27): “2.1 Some Basic Concepts of Macroeconomics … Such goods may be used by other producers as material inputs. Examples are steel sheets used for making automobiles and copper used for making utensils. These are intermediate goods, mostly used as raw material or inputs for production of other commodities. These are not final goods. …” |