Question

Differences between producer goods and intermediary goods

Answer 1

The goods used as inputs at the beginning of the production line would be considered capital or producer goods and might include cloth, plastic, or other materials.


Intermediate goods or semi-finished products are goods, such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate goods, or make and then sell, or buy then use them.