Which term is used for goods or services purchased for final consumption?

The term "Final Goods" refers to products that are purchased for final consumption, meaning they are ready for use by the end consumer without any further processing or modification. These are the goods that fulfill the end user's needs and are not intended for resale or for use in the production of other goods.

For instance, when you buy a loaf of bread from a bakery, that loaf is a final good because you are purchasing it for your immediate consumption. The distinction between final goods and other types of goods is important in economics, particularly when measuring a country's gross domestic product (GDP), as GDP includes only the market value of final goods to avoid double counting intermediate goods used in production.

Intermediate goods, by contrast, are those that are used in the production of final goods and are not sold directly to consumers. Capital goods are assets used by businesses to produce goods and services, while consumer goods can refer to any products purchased by consumers, typically including final goods, but not all consumer goods are classified as final goods within economic analyses. Thus, the specific terminology surrounding final goods underscores their unique role in economic transactions and consumption.