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Q.

The goods used as raw materials for further production are known by which name?


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a

Final goods

b

Consumer goods

c

Material goods

d

Intermediate goods 

answer is D.

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Detailed Solution

The goods used as raw materials for further production are known as Intermediate goods.
Intermediate goods, such as yarn, are goods used to produce a final good or finished product. They used to create clothing in the industry but made it with the help of cotton. These are used for resale between sectors to contribute to the further process of production. These semi-finished goods work as input to produce other final goods. These are typically used directly by a producer or sold to other producers. Intermediate goods are not included while measuring GDP.
 
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