Which of the following are the intermediate goods?

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Sugarcane for the production of sugar

Flour in the baking factory

Ready-made clothes made out of cotton

All of the above

answer is D.

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Detailed Solution

Sugarcane for sugar production, flour in the baking factory, and Ready-made clothes made out of cotton are examples of intermediate goods.
Intermediate goods are the goods that are used in the production process for the production of final goods. Some examples of intermediate goods are wheat, salt, milk, etc., but these goods can even be final goods purchased by the household for consumption purposes. Still, if they are purchased by some industry, bakery, etc., for further production of goods, they are referred to as intermediate goods. These goods' values are already included in the final goods. Thus, they are not included in the calculation of GDP.

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