[This is part of the series: The Complete Guide To Economics 101.]
What is final output?
Final Outputs are goods and services in an economy that are sold for their final use.
For instance, a cotton trader that is selling raw cotton to a textile mill is not an example of a product that is being sold for its final use.
Neither is a textile mill that sells a finished shirt to a retail store.
However, a university selling t-shirts to fans at a football game would be an example of goods being sold for final output.
This distinction is made because calculating some aggregates (for example, GDP) only accounts for goods and services classified as “final output.”