Which of the following are intermediate products?

Step 1: Analyze the question The question asks which pair of goods are intermediate products.

Step 2: Explain the concept Goods in economics can be grouped by where they are in the production process:

• Final (consumer) goods: finished products bought for direct use by the consumer, such as shirts, shoes and furniture.
• Intermediate goods: goods used as inputs to make other goods. They are not bought for final consumption. Examples are cement, steel, flour, timber and cotton yarn.
• Capital goods: machines and equipment used to produce other goods.

The test is whether the good is used up in making another product, or is sold to the end user.

Step 3: Apply it to each option

• A. Cement and steel: Both are used to make other things, such as buildings, bridges and roads. They are inputs, so they are intermediate goods. ✔
• B. Furniture and shirt: Both are finished goods for household or personal use, so they are final goods.
• C. Handkerchief and shoe: Both are finished consumer goods.
• D. Table and door: These are usually finished products used directly by consumers. Even though a door goes into a building, it is normally treated as a final good for household use, and cement and steel are the clearer intermediate goods.

Step 4: Answer Cement and steel are raw material inputs for construction, so the correct option is A.

💡 Exam tip: Ask yourself, "Will this be used to make something else?" If so, it is intermediate. If it goes straight to the consumer, it is final. Building materials like cement, steel, sand and iron rods are classic intermediate goods in WASSCE questions.