Choose the given statement is True/False

Intermediate goods are those goods which are not resold by the firms to make a profit during the year.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

True

False

answer is B.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The given statement is False.
An intermediate item is used to create a final good or finished product. Intermediate goods are referred to as those goods that are used in producing goods or services.
Because salt is used by producers to make other food items as well as consumed directly by customers, intermediate commodities such as salt may also be considered finished goods. Industries trade intermediate products for resale or the development of new products. These goods are also known as semi-finished products because they are used as components to make the finished product. Intermediate items are frequently referred to as producer goods since they are critical to manufacturing. Industries resell or manufacture other products in exchange for these products. When they are used in the manufacturing process, they transform.
The correct statement should be that the industries exchange intermediate products for resale or the creation of other products.

Watch 3-min video & get full concept clarity