Question

1. Which of the following refers to the intermediary good?
a. Goods that are included in the estimation of GDP
b. Goods that are not used as raw material for the production of other goods during a year
c. Goods that are used as raw material for the production of other goods during a year
d. Goods that are not resold by the firms to make a profit during a year

Answer 1

Answer:

Answer is (b) goods that are not

Answer 2

Goods that are used as raw material for the production of other goods during a year refer to the intermediary good. option(b)

Intermediary good:

• Goods that are used by businesses to manufacture goods or services are referred to as intermediate goods.

• To put it another way, intermediate goods are utilized to make final or consumer goods. They can also be defined as inputs into other goods and as ingredients in the end goods.
• Intermediate products can be created by a company for their use in the manufacturing of final goods or finished goods, or they can be sold to another company that produces finished goods.
• Semi-finished goods are another term for these items. Intermediate goods can be utilized in the following ways:
• Producing and utilizing for personal gain
• Creating intermediate goods and services