Q. Which of the following correctly explains the concept of final goods in economics?

[A] Goods used for further production of other goods.

[B] Goods that undergo further transformation at the hands of producers.

[C] Goods meant for final use and not to be used in further production processes.

[D] Goods used as intermediate inputs in various industries.

Answer: C
Notes:

Explanation:

  • Final goods are those goods and services that are ultimately consumed by the end user.
  • They are not meant for resale or further processing in the production chain. Even if final goods undergo transformation during consumption (like tea leaves being brewed), it does not affect their status as final goods since they are not being transformed for resale or further economic production.

Source- 12th NCERT: Economics: Macroeconomics

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