What are intermediate Goods, Definition, Examples Class 12 CBSE Board
Intermediate good is the important topic of Chapter National Income Macroeconomics Class 12 CBSE Board.
Here we are going to discuss indeed what are intermediate goods with examples and definitions, given in various books.
Definition of Intermediate Goods class 12
From the point of view of Chapter National Income. The Intermediate goods are defined as.
Intermediate products refer to those goods and services which are purchased during the year by one production unit from other production units and completely used up or resold during the same year
Book, S.k aggarwal
Intermediate goods refer to those goods which are used either for resale or for further production in the same year.
Book, Sandeep Garg
Characteristics of Intermediate goods
- purchased from one production unit from another
- Completely used up in producing final products or added up to closing stock
- resold without making any alternation within a year.
On the Basis of Definition of Intermediate Goods, we can define Intermediate Consumption
You read about intermediate consumption in the National Income chapter. It is concerned with intermediate goods and is defined as.
Intermediate consumption refers to the expenditure incurred by a production unit on purchasing those goods and services from other production units, which are meant for resale or for completely using up during the same year.
Book, S.K Aggarwal
Intermediate Goods Examples
- Good purchased for resale (like milk purchased by a dairy Shop)
- Goods used for further production (like milk used for making sweets)
- Paper purchased by a publisher.
- Purchase of rice by a grocery shop.
In order to have a better idea of Intermediate Goods with Example read the below article. I have explained each & every Example with reasons in detail.
Read Here:- Intermediate Goods examples explained with reasons
Further Reading
| S.N | Topics |
| 1. | What is GDP Deflator |
| 2. | What are externalities in economics |
| 3. | Limitations of GDP as a measure of welfare |
| S.N | Topics |
| 1. | 150+ Numerical of Value Added Method |
| 2. | 150+ Numerical of Income Method |
| 3. | 150+ Numerical of Expenditure Method |
| 4. | 150+ Numerical of National Income and related aggregates |
| S.N | Topics |
| 1. | 250+ MCQs of National Income |
Thank you for explaining the concept of intermediate goods in a clear and concise manner. I found the examples you provided to be particularly helpful in understanding the concept. This blog post has definitely helped me enhance my knowledge in this area.