What is the meaning of final goods and services?
Simply so, what are final goods and services give examples?
Final goods are those goods which have crossed the boundary line of production and are ready for use by the final consumers. Say for example milk used by the consumer for self-consumption. Only final goods are included in the estimation of national income.
Subsequently, question is, what are final goods write two examples? Write two examples
- Perishable Goods: They lose their value in single-use Example: Milk, fruits, etc.
- Durable Goods: Durable goods which yield service over time rather than existing completely made use at the moment of consumption. Examples are Televisions and computers.
Besides, which is an example of a final good?
Final goods are goods used by their final consumer, and intermediate goods are goods that are bought by a firm and sold to another firm. Example of final good is a car. Example of intermediate good is a tire before it goes on the car.
Is wood a final good?
For example wood I buy to make a chair for my house is a final good but wood bought by construction companies to build houses is not. An intermediate good is material or items that are final-products of a process, but is also used as an input in the production process of some final good.