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Q.

Intermediate goods refer to those goods which are used in the production of:


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a

Secondary goods

b

Primary goods

c

Manufactured goods

d

Other goods and services as Raw materials  

answer is D.

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Detailed Solution

Intermediate goods refer to those goods used in producing other goods and services as Raw materials. These goods are still within the production boundaries. The value of these goods is not included in the country's Gross Domestic Income or National Income, as the price of intermediate goods will be included in the value of the final good in which it is being used. It is based on the product's end use and whether it will be considered a final or intermediate good. For example, milk purchased by Mrs Seema, a homemaker, is the last good, while milk purchased by the Dairy shop owner is an intermediate good.
 
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