Final goods refer to those goods which are used either for consumption or for investment. Intermediate goods refer to those goods which are used either for resale or for further production in the same year. They are ready for use by their final users i.e. no value has to be added to the final goods.
Keeping this in consideration, what are final goods in economics?
“A final good is an item produced for the direct use by end consumers. Final goods are also referred to as consumer goods.” Put simply; the term refers to any commodity that a company produces and a consumer subsequently consumes. The consumer consumes it to satisfy his or her current wants or needs.
Also Know, what is meant by intermediate goods and services?
An intermediate good is a product used to produce a final good or finished product—also referred to as a consumer good. Intermediate goods are sold between industries for resale or the production of other goods.
What are final goods write two examples?
What are final goods? 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.
What is intermediate process?
An intermediate product is a product that might require further processing before it is saleable to the ultimate consumer. Thus, an intermediate product might be a final product for one company and an input for another company that will process it further.