Which of the following correctly describes a final good?
I.A final good is bought by its final consumer.
Ii.A final good can be used by a firm as a component of another good or service.
Iii.Investment goods cannot be a final good.
A)i only
B)i and ii
C)i,ii and iii
D)i and iii
E)ii and iii

Question

Quizplus · Accepted Answer

A final good is purchased by the end consumer and is not used as a component in the production of another good or service. Investment goods, on the other hand, are goods that are purchased by businesses for the purpose of increasing production or providing services, and are not for final consumption. Choice (i) correctly describes a final good, while choices (ii) and (iii) are incorrect.

Which of the Following Correctly Describes a Final Good