Goods

GOODS – TERMS & DEWETT CONCEPT – 36/38

GOODS - MEANING • Anything that can satisfy a human want is called a“ GOOD” in Economics • Human wants are the starting point of all economic activity. Man has wants which he wants to satisfy. There are two things with which he can satisfy these wants and they are “ goods & services”

SERVICES & GOODS • Goods are commodities that we use and services refer to the work that a person do. • Services are not tangible or concrete. eg- help of a teacher, advice of a lawyer or doctor, work done by railways or services by domestic servants. • Goods are concrete or tangible. Eg-

Goods - classifications Free goods & economic goods. Consumption, capital & intermediate goods. Material & non-material goods. Transferable & non transferable goods. Personal & impersonal goods. Private & public goods. Necessaries, comforts & luxuries.

KINDS OF GOODSclassifications

Distinction between economic goods and free goods is not permanent

• A good may be free good today and economic good tomorrow and in different situations a good may be free or economic. • For instance, air is not free good in deep mine, water in a city has to be paid.

Consumption & Capital goods

Intermediate Goods • In between the consumption goods and capital goods are intermediate goods. They are raw materials used in the production of final product. • For instance, in the production of cloth , cotton or synthetic fiber is raw material .

Material & Non material goods

Transferable and Nontransferable goods

Personal & impersonal Goods

Private & Public goods

Goods – further classifications