Question

Which of the following definitions most accurately defines the phrase "final goods and services"? Those goods used in the production of another good. Those goods used in the production of secondary equipment. Those goods purchased by consumers. Those goods exported to other countries.

Answer 1

Final Goods :Those goods purchased by the consumers.

Answer 2

The correct answer is C. Those goods purchased by consumers.

Explanation:

The final goods and services are those purchased by consumers or the final stage of a product/service, usually after a complete process involving other products. For example, bikes are a final product but in the production of these, there are other products involved such as wheels that are not final products but are necessary to produce another good. Additionally, this type of goods or services differs from others because they are directly used or enjoyed by the consumer. According to this, the option that defines "final goods and services" is "those goods purchased by consumers".