Goods
All those things which are used by human to satisfy their wants are called goods. In our daily life we use a variety of goods and services. Like Food, clothes, car, mobile, fan, soap, chair etc.
Services
All those actions in which no physical goods are transferred from one person to another person are called services. For example, lecture by the professor, a doctor cure, a hairdresser cutting hair are services.
Classification of Goods
1) Consumer Goods: The goods which can satisfy human wants directly. Like a water, mobile, computer, clothes, toothbrush and car etc. Every person in this world wants to satisfy his desire by consuming maximum goods. The person who consumes more goods than other person has a higher standard of living.
2) Producer Goods: The goods which are used for the production of other goods are called producer goods. These goods can be produce from land, labor or capital. Producer goods can be classified into three categories.
a) Raw Materials like sugarcane, crude oil, wood and cotton etc.
b) Semi-Manufactured Goods like petrol, diesel, wheat flour etc.
c) Manufactured Goods like washing machine, tractor, computer etc.
Consumer and producer goods does not depend on their nature. A good may be a consumer good to use at one time while it may be a producer good to use at another time. For example when a car used for trip will be considered as consumer good but when the same car is used for taxi, it will be considered as producer good.
2) Producer Goods: The goods which are used for the production of other goods are called producer goods. These goods can be produce from land, labor or capital. Producer goods can be classified into three categories.
a) Raw Materials like sugarcane, crude oil, wood and cotton etc.
b) Semi-Manufactured Goods like petrol, diesel, wheat flour etc.
c) Manufactured Goods like washing machine, tractor, computer etc.
Consumer and producer goods does not depend on their nature. A good may be a consumer good to use at one time while it may be a producer good to use at another time. For example when a car used for trip will be considered as consumer good but when the same car is used for taxi, it will be considered as producer good.
Economic and Non-economic Goods
1) Economic goods: The goods that are scarce in relation to demand for them are called economic goods. These have a price and are bought and sold in the market. Like rice, sugar, bike, book, chair etc.
Note: A good may be free at one place and time but an economic good at some different time and place. For example, rocks are free good on mountainous areas, but when it is brought to cities, it becomes an economic good.
2) Non-economic goods: Those goods which are not scarce in relation to demand for them are called non-economic goods. These goods have no price but are free available in nature. Like ocean, oxygen, sunshine etc.
Note: A good may be free at one place and time but an economic good at some different time and place. For example, rocks are free good on mountainous areas, but when it is brought to cities, it becomes an economic good.
2) Non-economic goods: Those goods which are not scarce in relation to demand for them are called non-economic goods. These goods have no price but are free available in nature. Like ocean, oxygen, sunshine etc.
Public Goods
Public goods are the commodities provided by the government of a country for the benefit of general public free of cost or by taxing the few rich people. For example; Highways, public parks, bus stops, street lights etc.
Private Goods
Private goods are those commodities which are manufactured or produced by the companies owned by entrepreneurs are called private goods. For example; food items, clothes, shoes etc.
Tags:
Economics