Which of the following is an example of intermediate goods?
Which of the following is an example of intermediate goods?
(a) Car purchased by a dealer of second-hand cars
(b) Steel and cement used to construct a flyover
(c) Fertilizers purchased by a farmer
(d) All of these
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Ans – (d)
Car purchased by a dealer of second-hand cars is meant for resale, thus an intermediate goods.
Steel and cement used to construct a flyover is used as raw material to produce final goods (flyover). Thus, is an intermediate goods.
Fertilizers purchased by a farmer is used as raw material to produce final goods (Crops). Thus, is an intermediate goods.
Intermediate goods are those goods which are purchased by one firm from another firm either for resale or to be used as raw material to produce final goods within a year.
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