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Which of these is the correct reason for a good to be identified as a final good?
Question

Which of these is the correct reason for a good to be identified as a final good?

A.

It is not processed by a consumer after purchase.

B.

It cannot be recycled or re - used.

C.

It is in the last stage of the product life cycle.

D.

It is not processed further by a producer.

Correct option is D

A good is identified as a final goodif it is not processed further by a producer. Final goods are items that are ultimately consumed rather than used in the production of another good.
For example, a car sold to a consumer is a final good; the tires used in the production of the car are intermediate goods.

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