Intermediate Goods: Definition & Examples

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  • 0:01 What Are Intermediate Goods?
  • 0:58 Examples
  • 1:59 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley

Shawn has a masters of public administration, JD, and a BA in political science.

Businesses don't just sell goods. They also consume goods. In this lesson, you'll learn about intermediate goods, some related concepts, and be provided some examples.

What Are Intermediate Goods?

Intermediate goods are goods that are used by a business in the production of goods or services. Intermediate goods are also referred to as producer goods. A consumer good, on the other hand, is a good purchased by a consumer for personal consumption. In fact, intermediate goods are used to make consumer goods.

You cannot determine whether a good is an intermediate good or a consumer good based on what it is. Many goods are both consumer goods and intermediate goods. Instead, whether a good is a consumer good or an intermediate good depends upon how it's used. If a good is used to produce a good for sale or to provide a service, then it's an intermediate good. On the other hand, if a good is purchased for personal consumption, then it's not an intermediate good.


Let's look at some examples:

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