Final goods can be defined as:

Final goods are defined as products that have completed the production process and are ready for consumption or use by the end consumer. This means that they are purchased by their ultimate user, who does not intend to transform them further in any way.

This distinction is crucial because it differentiates final goods from intermediate goods, which are used in the production of final products. For instance, flour used to make bread is an intermediate good, while bread itself is considered a final good because it can be consumed directly by individuals.

Understanding this definition is important in economics, as it helps to clarify concepts related to gross domestic product (GDP) and economic output measurements. Only the value of final goods and services is counted when calculating GDP to avoid double counting the inputs used in their production.