Which of the following is not true about final goods ?
Options:
| A. final gods satisfy wants of ultimate consumers and producers. B. final goods have direct demand as they satisfy the wants directly. C. final goods are subject to further transformation in the process of production. D. final goods are neither used up as raw-material nor for resale in the same year. |
The Correct Answer Is:
C. final goods are subject to further transformation in the process of production.
Final goods are those goods that have reached the end of the production process and are ready for consumption or use by the end consumer. They are not used as inputs for further production. Among the options provided, the correct statement is:
C. Final goods are subject to further transformation in the process of production.
This statement is incorrect. Final goods have already undergone all necessary transformations and are ready for consumption or use by the end consumer. They do not go through further production processes. Final goods are the end result of the production process, and they are not used as inputs for the production of other goods.
Option C, which states that final goods are subject to further transformation in the process of production, is not accurate. Final goods, by definition, have already undergone all necessary stages of production and are in their finished form, ready for consumption or use by the end consumer.
They do not require any additional transformation or processing before they can be utilized. For instance, consider a manufactured car. Once it has been assembled and inspected, it is considered a final good. It does not go through any further production processes; instead, it is shipped to dealerships for sale to consumers.
Any additional modifications or customizations that a consumer may choose to make to the car after purchase are not considered part of the production process for final goods. Therefore, it is important to understand that final goods are the end result of production, and they do not undergo any further transformation in the production process.
Now, let’s examine why the other options are not correct:
A. Final goods satisfy wants of ultimate consumers and producers.
This statement is accurate. Final goods cater to the needs and desires of both ultimate consumers and producers. Ultimate consumers are individuals or households who purchase goods for their own consumption, while producers use final goods as inputs in their own production processes.
For example, a computer can be a final good for an individual who uses it for personal use, while it can also be an input for a graphic design company that incorporates it into their production process.
B. Final goods have direct demand as they satisfy the wants directly.
This statement is also accurate. Final goods are directly demanded by consumers because they serve their immediate needs or desires. Consumers seek out final goods to meet specific requirements, such as food, clothing, or electronics. The demand for final goods is driven by their ability to directly fulfill these needs.
D. Final goods are neither used up as raw material nor for resale in the same year.
This statement is correct as well. Final goods are not intended for use as raw materials in the production process. They have already undergone all necessary transformations and are ready for consumption or use.
Furthermore, final goods are not typically acquired with the intention of resale within the same year. They are meant for final consumption or utilization by the end consumer.
In summary, options A, B, and D are all accurate statements about final goods. They provide valid descriptions of the characteristics and uses of these goods. It is option C that is incorrect, as it wrongly suggests that final goods undergo further transformation in the production process, which is not the case.
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