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And finance Allah Shmoop What are intermediate goods Oh not

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good as in the moral sense Like good versus evil

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

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not that bad Like you know giving a homeless person

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

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services like something you make a product So what about

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the intermediate part of this term Well like it sounds

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you know intermediate like in between Enter the medium or

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something like that but not in terms of size Not

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like small good A single ice cream Sprinkle large good

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

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quite with term Intermediate good means either An intermediate good

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is a product that is manufactured but is usually not

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sold directly to consumers Instead intermediate goods air used as

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a part of another product one that is larger or

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more intricate Think car parts like fuel lines and spark

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plugs And you know that kind of stuff Well sometimes

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these gets sold to regular consumers at auto parts stores

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

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

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Yeah a car Well construction materials are another example here

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Intermediate goods two by fours nails Whatever it is that

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

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display it on your coffee table As you know an

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

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

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

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

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intermediate A lot of food products fall into this category

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as well Think about sugar Now Sometimes you might sit

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in front of the TV with a bag of sugar

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on your lap spooning heaps of it into your gaping

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

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

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while watching TV After a bad break up you might

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use a lot of sugar to make the stacks and

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stacks of cookies you eat on a daily basis but

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your consumption pales in comparison to a big time manufacturer

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You know chews up a lot of sugar in their

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

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by sugar by the ton and turns it into millions

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of packages of sweet obesity cookies which it chips to

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grocery stores for good little boys and girls all around

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the world with sugar itself was manufactured transformed from sugar

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cane at a factory in Colombia somewhere into the white

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crystal Lee stuff that you recognised Well sometimes that just

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gets bagged and sent to the store where you as

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the consumer can buy it If that happens it gets

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counted as a final good But more of it get

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shipped off to Hypo Industrial Confectionery Global where it becomes

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an ingredient and intermediate in sweet obesity cookies with sugar

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

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