Final answer:
Intermediate goods are used in the production of a final product but are not easily identifiable in the finished product. They include materials that are incorporated during the production process and are different from final goods and services which are provided directly to the end-users.
Step-by-step explanation:
Products used directly in the production of a final product but are not easily identifiable are categorized as intermediate goods. These are the outputs provided to other businesses at an intermediate stage of production and are not intended for final users. This is in contrast to final goods and services, which are consumed by the end-users or included as a finished product. Intermediate goods play a crucial role in the supply chain as they are inputs that contribute to the production of the final product.
For instance, when producing a car, intermediate goods such as screws, oils, and engine components are necessary though they aren't recognizable in the final car purchased by a consumer. Consider the factors of production which include inputs like labor, materials, and machinery that are utilized to produce goods and services; intermediate goods are among these materials that are later transformed into final products.