Which of the following is necessarily a final good?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. An XL size shirt.
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A final good is a product that is ready for consumption and will not be used to produce other goods.
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An XL size shirt is a finished product ready for use by the consumer, so it is a final good.
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Cotton is a raw material used to make textiles and clothes, so it is an intermediate good.
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Clothing is a general category and not specific; it may include both final and intermediate goods.
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A particular brand of tea can be a final good if sold for consumption, but the most precise answer here is the specific finished product, the XL shirt.