Canadian Securities Course (CSC) Level 1 Practice Exam

Define Final good.

1. Something produced solely for export

2. Something bought for personal use by the ultimate end user.

3. Something purchased by businesses for production purposes.

4. Something unsold at the end of a production period.

The correct answer is: Something bought for personal use by the ultimate end user.

The correct definition of a final good is indeed something bought for personal use by the ultimate end user. Final goods refer to products that have completed the production process and are ready for consumption. These goods are contrasted with intermediate goods, which are used in the production of final goods and are not directly consumed. When final goods are purchased, they are intended for consumption or personal use rather than resale or further production. This is why the focus is on the end user—the consumer who ultimately uses the product as opposed to businesses that may be purchasing goods for manufacturing or production. This definition highlights that the consumption of final goods directly satisfies the needs or wants of the buyer, distinguishing them from raw materials or goods intended for business purposes, which would not fall under this category.