What do you understand by the term "Intermediate goods"? |
Goods used by consumers for the process of construction Goods used by other producers as material inputs Goods used by intermediaries for the process of distribution Goods used by manufacturers for the process of consumption |
Goods used by other producers as material inputs |
Of the total production taking place in the economy a large number of products don’t end up in final consumption and are not capital goods either. 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. |