final goods is an important topic of national income chapter of macroeconomics in class 12 CBSE Board. In order to calculate National Income only money value of final goods is taken into consideration.
In simple words GDP is just sum total of money value of final goods produced within the domestic territory of a country.
Definition of Final goods in Economics
Final goods refer to those goods which are used either for consumption or for investment.
- All goods (durable or non-durable) purchased by consumer households are final goods as they are meant for final consumption purposes.
for example:- tv, fridge, vegetables, electricity, food etc.
on the other hand, goods purchased by production units (producer) for investment (for capital formation) purposes are termed as final goods.
for example, machinery, furniture, durable goods etc.