In the context of GDP, a new motherboard purchased for a computer is classified as what type of good?

The new motherboard purchased for a computer is categorized as a final good because it is ready for use by the ultimate consumer, typically the individual or business that will assemble or use the computer. In economic terms, final goods are those that have completed the production process and are sold to end consumers for direct consumption, rather than for further processing or resale.

This classification is essential in distinguishing between different types of goods for the measurement of GDP. Final goods contribute directly to the overall economic output, whereas intermediate goods, like parts or components that will be used in the production of final products, are not counted separately in GDP to avoid double counting. Intermediate goods are involved in the production process but do not end up in consumer hands.

Understanding this distinction reinforces the importance of accurately measuring economic activity, as including intermediate goods in GDP calculations could inflate the figures and misrepresent the true level of economic production.