ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Tires that a consumer buys to replace the worn tires on her car are final goods. The same tires, if bought instead by an automaker, would be intermediate inputs for new cars.

Detailed explanation-2: -An automobile engine is an example of an intermediate good, and is used in the production of the final good, the assembled automobile.

Detailed explanation-3: -Some examples of intermediate goods include: Salt: Salt is an intermediate good because companies include it in the final product of many food and nonfood items. Wheat: Like salt, wheat is an intermediate good because companies process it as part of another product, usually food or food-related goods.

Detailed explanation-4: -Intermediate inputs of an industry are the goods and services (including energy, raw materials, semi-finished goods, and services that are purchased from all sources) that are used in the production process to produce other goods or services rather than for final consumption.