Final answer:
Intermediate goods are purchased for further processing or for business use, contrasting with consumer goods for individual use. They include raw materials or components and are essential in producing final goods or services.
Step-by-step explanation:
Intermediate goods are those products purchased for further processing or for use in conducting a business. These goods are part of the economic products category, which encompasses all goods and services that are transferable, scarce, and useful. Intermediate goods stand in contrast to consumer goods, such as shoes or cars, which are intended for direct use by individuals. Intermediate goods might include raw materials like steel used in the construction of buildings, or parts like semiconductor chips that are installed in computers. These goods are essential in the production of final goods and services, which are the ultimate output provided to the end-users.
Furthermore, these products are crucial for a variety of business operations and are considered capital goods, like a bulldozer or a cash register, which help produce other goods or offer services. It's important to distinguish intermediate goods from durable goods like televisions, or non-durable goods like food products, based on the longevity of their use. Lastly, the production and distribution of intermediate goods are deeply integrated into LibreTexts™, the resource market, and factors like bulk reducing and gaining that inform decisions on manufacturing locations.