Q.Write a short note on: Intermediary goods

Intermediate goods are goods bought by one producer from another for use as raw material or for resale within the year; they are not for final use. They are excluded from national-income calculation to prevent double counting, since their value is already contained in the value of final goods.

Explanation

Intermediate goods (or intermediary goods) are those goods and services which are used up completely in the process of producing other goods during the same accounting year, or which are bought for resale. They have not reached their final user. Examples include raw cotton purchased by a cloth mill, wheat flour bought by a baker, and tyres bought by a car manufacturer.

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