Index of Economic Freedom

And finance Allah Shmoop What are intermediate goods Oh not

good as in the moral sense Like good versus evil

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

not that bad Like you know giving a homeless person

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

services like something you make a product So what about

the intermediate part of this term Well like it sounds

you know intermediate like in between Enter the medium or

something like that but not in terms of size Not

like small good A single ice cream Sprinkle large good

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

quite with term Intermediate good means either An intermediate good

is a product that is manufactured but is usually not

sold directly to consumers Instead intermediate goods air used as

a part of another product one that is larger or

more intricate Think car parts like fuel lines and spark

plugs And you know that kind of stuff Well sometimes

these gets sold to regular consumers at auto parts stores

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

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

Yeah a car Well construction materials are another example here

Intermediate goods two by fours nails Whatever it is that

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

display it on your coffee table As you know an

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

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

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

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

intermediate A lot of food products fall into this category

as well Think about sugar Now Sometimes you might sit

in front of the TV with a bag of sugar

on your lap spooning heaps of it into your gaping

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

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

while watching TV After a bad break up you might

use a lot of sugar to make the stacks and

stacks of cookies you eat on a daily basis but

your consumption pales in comparison to a big time manufacturer

You know chews up a lot of sugar in their

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

by sugar by the ton and turns it into millions

of packages of sweet obesity cookies which it chips to

grocery stores for good little boys and girls all around

the world with sugar itself was manufactured transformed from sugar

cane at a factory in Colombia somewhere into the white

crystal Lee stuff that you recognised Well sometimes that just

gets bagged and sent to the store where you as

the consumer can buy it If that happens it gets

counted as a final good But more of it get

shipped off to Hypo Industrial Confectionery Global where it becomes

an ingredient and intermediate in sweet obesity cookies with sugar

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