A final good is one which:-

A. Undergoes further transformation at the hands of any producer
B. Once it has been sold, it passes out of the active economic flow
C. It is meant for intermediate use
D. It may undergo transformation by the action of the ultimate purchaser
E. Will not pass through any more stages of production or transformation

Choose the correct answer from the options given below:

B, D and E only

The correct answer is Option (4) → B, D and E only

A. Undergoes further transformation at the hands of any producer: This describes an intermediate good, not a final good. Intermediate goods are used in the production process and undergo further transformation by producers before becoming part of a final good.

B. Once it has been sold, it passes out of the active economic flow: This is a characteristic of a final good. Once a final good is sold to the end consumer, it exits the economic flow because it is consumed or used for its intended purpose.

C. It is meant for intermediate use: This describes an intermediate good, not a final good. Intermediate goods are used in the production process and are not meant for final consumption.

D. It may undergo transformation by the action of the ultimate purchaser: This is correct. Even though a good is classified as a final good, the ultimate purchaser (consumer) may still use it or transform it further according to their needs. For example, a consumer may buy ingredients (final goods) to cook a meal at home.

E. Will not pass through any more stages of production or transformation: This defines a final good. Final goods are products that are ready for consumption and do not undergo further production stages. They are the end products of production.