In economic terms, what do we mean by ‘Intermediate Goods’ ?Goods sold between industries for resale or production of other goods. Goods in transit before reaching the consumers. Price of goods without GST. Fixed assets used by manufacturers.
Question
In economic terms, what do we mean by ‘Intermediate Goods’ ?Goods sold between industries for resale or production of other goods. Goods in transit before reaching the consumers. Price of goods without GST. Fixed assets used by manufacturers.
Solution
In economic terms, 'Intermediate Goods' refer to goods that are sold between industries for resale or for the production of other goods. These are goods that are used as inputs in the production of other goods such as raw materials or components. They are not final goods as they are further used in the production process. They are also not counted in a country's GDP, to avoid double counting, as they are part of the final product which is counted in the GDP. Examples of intermediate goods include steel for car production, flour for bread making, etc.
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