Question:medium

Identify the final good from the following.

Show Hint

Final goods are those that are consumed by the end-user, while intermediate goods are used in the production of other goods.
Updated On: May 7, 2026
  • Idli made by a cook in a family
  • Wheat produced and sold by the farmer to the floor mill
  • Shirt buttons sold by a shopkeeper to a tailor
  • Paper sold by a factory to a book binder
Show Solution

The Correct Option is A

Solution and Explanation

In economics, a final good is a commodity that is used by the consumer to satisfy current wants or needs, as opposed to an intermediate good, which is used to produce other goods.
Let's analyze the options:
(B) Wheat sold to a floor mill: This is an intermediate good because the mill will process the wheat into flour, which will be used to produce other goods like bread or biscuits.
(C) Shirt buttons sold to a tailor: These are intermediate goods because the tailor will use them as inputs to produce a final good, which is the shirt.
(D) Paper sold to a book binder: This is an intermediate good because the book binder will use it as an input to produce a final good, which is a book.
(A) Idli made by a cook in a family: This idli is prepared for direct consumption by the family. It is not being used as an input for further commercial production. It represents the end of the production chain for that item. Therefore, it is considered a final good in this context.
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