Content deleted Content added
Northamerica1000 (talk | contribs) Change image and add a descriptive image caption |
TAFI: add link. copyedit. |
||
(6 intermediate revisions by 3 users not shown) | |||
Line 1: | Line 1: | ||
{{TAFI}} |
|||
[[File:B 6b.jpg|thumb|right|An automobile engine is an example of an intermediate good, and is used in the production of the [[final goods|final good]], the assembled automobile.]] |
[[File:B 6b.jpg|thumb|right|An automobile engine is an example of an intermediate good, and is used in the production of the [[final goods|final good]], the assembled automobile.]] |
||
'''Intermediate goods''' or '''producer goods''' or '''semi-finished products''' are [[Good (economics)|goods]], such as partly finished goods, used as inputs in the production of other goods including [[final good]]s.<ref>{{cite book |
'''Intermediate goods''' or '''producer goods''' or '''semi-finished products''' are [[Good (economics)|goods]], such as partly finished goods, used as inputs in the production of other goods including [[final good]]s.<ref>{{cite book |
||
Line 10: | Line 11: | ||
| location = Upper Saddle River, New Jersey 07458 |
| location = Upper Saddle River, New Jersey 07458 |
||
| pages = 301 |
| pages = 301 |
||
| isbn = 0-13-063085-3}}</ref> A firm may make and then use intermediate goods, or make and then sell, or buy then use them. In the production process, intermediate goods either become part of the final product, or are changed beyond recognition in the process. |
| isbn = 0-13-063085-3}}</ref> A firm may make and then use intermediate goods, or make and then sell, or buy then use them. In the production process, intermediate goods either become part of the final product, or are changed beyond recognition in the process.<ref name="Hardy1978">{{cite book|author=C. Colburn Hardy|title=The Investor's Guide to Technical Analysis|url=https://books.google.com/books?id=9WvXQIwHC48C&pg=PA439|accessdate=14 August 2017|date=1 January 1978|publisher=Tata McGraw-Hill Education|isbn=978-0-07-026365-9|pages=439–}}</ref> |
||
Intermediate goods are not counted in a country's [[Gross domestic product|GDP]], as that would mean [[double counting (accounting)|double counting]], as the final product only should be counted, and the value of the intermediate good is included in the value of the final good. |
Intermediate goods are not counted in a country's [[Gross domestic product|GDP]], as that would mean [[double counting (accounting)|double counting]], as the final product only should be counted, and the value of the intermediate good is included in the value of the final good.<ref name="Tucker2008">{{cite book|author=Irvin Tucker|title=Survey of Economics|url=https://books.google.com/books?id=gY0nphIDDugC&pg=PA219|accessdate=14 August 2017|date=25 February 2008|publisher=Cengage Learning|isbn=0-324-57961-6|pages=219–}}</ref> |
||
[[File:Figure 3- U.S. and Chinese Trade in Goods with ASEAN Countries by Use, 2014 (21438915796).jpg |
[[File:Figure 3- U.S. and Chinese Trade in Goods with ASEAN Countries by Use, 2014 (21438915796).jpg|thumb|U.S. and Chinese Trade in Goods with ASEAN Countries by Use, 2014]] |
||
Characterization of intermediate goods as physical goods can be misleading, since, in advanced economies, about half of the value of intermediate inputs consist of [[Service (economics)|services]].<ref name="Ghosh2011">{{cite book|author=Chandana Ghosh|title=Macroeconomics|url=https://books.google.com/books?id=5mvKKTq-OekC&pg=PA27|accessdate=14 August 2017|year=2011|publisher=PHI Learning Pvt. Ltd.|isbn=978-81-203-4306-1|pages=27–}}</ref> |
|||
==Examples== |
==Examples== |
||
* [[Sugar]] – sugar is used as a final good (when it is sold as sugar in the supermarket) or as an input (when it is used as an ingredient in other food products) |
* [[Sugar]] – sugar is used as a final good (when it is sold as sugar in the supermarket) or as an input (when it is used as an ingredient in other food products)<ref name="Sawai2016">{{cite book|author=Minoru Sawai|title=Economic Activities Under the Japanese Colonial Empire|url=https://books.google.com/books?id=anpBDAAAQBAJ&pg=PA35|accessdate=14 August 2017|date=27 May 2016|publisher=Springer|isbn=978-4-431-55927-6|pages=35–}}</ref> |
||
* [[Steel]] – a raw material used in the production of many other goods, such as [[bicycle]]s |
* [[Steel]] – a raw material used in the production of many other goods, such as [[bicycle]]s.<ref name="WoodMcLure2005">{{cite book|author1=John Cunningham Wood|author2=Michael McLure|title=Paul A. Samuelson|url=https://books.google.com/books?id=V4fkhxDRcTEC&pg=PA351|accessdate=14 August 2017|year=2005|publisher=Taylor & Francis|isbn=978-0-415-31063-5|pages=351–}}</ref> |
||
* [[Internal combustion engine|Car engines]] - Some firms make and use their own, others buy them from other producers as an intermediate good, then use them in their own car |
* [[Internal combustion engine|Car engines]] - Some firms make and use their own, others buy them from other producers as an intermediate good, then use them in their own car.<ref>{{cite book|title=FCS Economic Environment L3|url=https://books.google.com/books?id=eONFX3C9ew0C&pg=PA26|accessdate=14 August 2017|year=2008|publisher=Pearson South Africa|isbn=978-1-77025-087-1|pages=26–}}</ref> |
||
* Paint, [[plywood]], pipe and tube, and ancillary parts.<ref name="Fajardo1995">{{cite book|author=Feliciano R. Fajardo|title=economics third edition|url=https://books.google.com/books?id=4FXPwafvP84C&pg=PA148|accessdate=14 August 2017|year=1995|publisher=Rex Bookstore, Inc.|isbn=978-971-23-1794-1|pages=148–}}</ref> |
|||
* Paint, [[plywood]], pipe and tube, and ancillary parts |
|||
* An interesting example is the use of [[chlorine]] in the production of [[polyurethane]], which contains no chlorine. Rock salt is electrolyzed to produce chlorine, which is reacted with [[carbon monoxide]] to give [[phosgene]]. Phosgene, a chlorine compound, and a [[diamine]] are then reacted to produce a [[diisocyanate]] and hydrochloric acid that is neutralized ''in situ''. The chlorine is removed as chloride salt waste. The diisocyanate reacts with a diol to produce polyurethane, which contains no chlorine. Chlorine is used because chlorine is electronegative enough to produce an [[isocyanate]], but does not become a part of the product; it lowers the [[atom economy]]. |
* An interesting example is the use of [[chlorine]] in the production of [[polyurethane]], which contains no chlorine. Rock salt is electrolyzed to produce chlorine, which is reacted with [[carbon monoxide]] to give [[phosgene]]. Phosgene, a chlorine compound, and a [[diamine]] are then reacted to produce a [[diisocyanate]] and hydrochloric acid that is neutralized ''in situ''. The chlorine is removed as chloride salt waste. The diisocyanate reacts with a diol to produce polyurethane, which contains no chlorine. Chlorine is used because chlorine is electronegative enough to produce an [[isocyanate]], but does not become a part of the product; it lowers the [[atom economy]]. |
||