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Econ: What are Intermediate Goods? 5 Views


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What are Intermediate Goods? Intermediate goods are products used to make final goods, such as raw and alloy materials, commodities, and components. For example, aluminum is used for making aircraft; sugar for sweetening foods and beverages, and electronic parts are used for making devices, such as computers and smartphones.

Language:
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Transcript

00:00

And finance Allah Shmoop What are intermediate goods Oh not

00:07

good as in the moral sense Like good versus evil

00:11

An intermediate good isn't something that's not that great but

00:14

not that bad Like you know giving a homeless person

00:17

a nickel No we're talking about goods like goods and

00:20

services like something you make a product So what about

00:24

the intermediate part of this term Well like it sounds

00:27

you know intermediate like in between Enter the medium or

00:31

something like that but not in terms of size Not

00:34

like small good A single ice cream Sprinkle large good

00:38

U S Nimitz Intermediate Good mini Cooper No that's not

00:42

quite with term Intermediate good means either An intermediate good

00:45

is a product that is manufactured but is usually not

00:48

sold directly to consumers Instead intermediate goods air used as

00:53

a part of another product one that is larger or

00:56

more intricate Think car parts like fuel lines and spark

01:00

plugs And you know that kind of stuff Well sometimes

01:03

these gets sold to regular consumers at auto parts stores

01:06

but usually they're bought by car manufacturers and become building

01:09

blocks for a larger product like what's it called Oh

01:12

Yeah a car Well construction materials are another example here

01:16

Intermediate goods two by fours nails Whatever it is that

01:19

goes into spackle you don't just buy a nail on

01:21

display it on your coffee table As you know an

01:24

art item Okay maybe you do but normal people don't

01:27

When you buy a nail it's a means to an

01:29

end You're building something else and you need a nail

01:32

toe Hold it together It's not the final good It's

01:35

intermediate A lot of food products fall into this category

01:38

as well Think about sugar Now Sometimes you might sit

01:41

in front of the TV with a bag of sugar

01:43

on your lap spooning heaps of it into your gaping

01:46

maw Well usually it's used as an ingredient to make

01:49

cookies You know which you'll then shovel into your ma

01:52

while watching TV After a bad break up you might

01:55

use a lot of sugar to make the stacks and

01:57

stacks of cookies you eat on a daily basis but

01:59

your consumption pales in comparison to a big time manufacturer

02:02

You know chews up a lot of sugar in their

02:04

products So let's take Hypo Industrial Confectionery treats global It

02:09

by sugar by the ton and turns it into millions

02:12

of packages of sweet obesity cookies which it chips to

02:16

grocery stores for good little boys and girls all around

02:19

the world with sugar itself was manufactured transformed from sugar

02:23

cane at a factory in Colombia somewhere into the white

02:26

crystal Lee stuff that you recognised Well sometimes that just

02:29

gets bagged and sent to the store where you as

02:32

the consumer can buy it If that happens it gets

02:34

counted as a final good But more of it get

02:38

shipped off to Hypo Industrial Confectionery Global where it becomes

02:42

an ingredient and intermediate in sweet obesity cookies with sugar

02:46

Here is the intermediate good the cookies or the final 00:02:49.793 --> [endTime] good and we mean yeah good Tasty

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