Question

What are Intermediate Goods?

• A. Goods that are used in production of final goods and services
• B. Goods that are directly exploited from nature
• C. Goods used as input in agriculture
• D. Goods used in manufacturing

Answer 1

The correct option is A Goods that are used in production of final goods and services

An intermediate good is a product utilized to produce a final good or finished product. These goods are sold between industries for resale or for the production of other goods. One example of an intermediate good is salt, a product that is directly consumed and is also used to manufacture food products.