In the context of economy, which of the following is an example of Intermediate good?
Copper used for making utensils
The question tests the distinction between intermediate goods and final goods, a core idea in national income accounting.
An intermediate good is one that is bought by a producer to be used up as an input in making another good, so it is not sold for final use in the same form; its value gets absorbed into the value of the finished product.
A final good, by contrast, is purchased by its ultimate user (a household for consumption, or a firm as investment) and is not resold or further transformed.
Here, copper used for making utensils is consumed within the production process, the copper is worked into the finished utensils, so it is an input, making it an intermediate good.
A shirt bought to wear, a television bought by a household, and a refrigerator are all purchased for direct final use by consumers, so each of these is a final good, not an intermediate good.
The distinction matters for GDP calculation: only final goods are counted, while intermediate goods are excluded to avoid the problem of double counting (otherwise the copper would be counted once on its own and again inside the utensil).
Therefore the example of an intermediate good among the options is Copper used for making utensils.
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2) The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
The national income of a country for a given period is equal to the
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During a recession when GDP falls, disposable income _______.
