What are intermediate goods?

Question

goods that are not sold or exchanged in an economy

goods that are produced outside the country

goods used in the production of other goods

goods that were sold in earlier years

Answer 1

Intermediate goods are goods used in the production of other goods. They are products that are not finished products themselves but are used as inputs in the production process to create final goods. Examples include steel used in construction, flour used in baking bread, and fabric used in making clothing.