Professional Documents
Culture Documents
and Services
Goods
1. Goods are tangible i.e. they can be seen and touched.
3. It cannot be stored.
4. Transfer of service is not possible. You can touch the teacher but not what she is
teaching.
E.g.
The teacher is teaching and you are learning,
Production and consumption is taking place at the same time.
You cannot store her teaching nor transfer what she is teaching now.
This is a service the teacher is giving you.
Classification of Goods and Services
Economic Goods
Free Goods and
E.g. Sand
Desert Sand
Sand at a construction site
This is free and available in plenty This not free and you have to pay
i.e. unlimited quantity of sand is for this sand. You get sand for
there how much you have paid, if you
want more sand you need to pay
more money.
Free Services are those services that cannot be bought in the market. For e.g. Parents love their
children. Mothers cooking for her family.
Economic services :All those services, doctor, teacher, engineer, bank officer, cobbler, etc.
have to be bought in the market. These services are called economic services.
CONSUMERS ARE PEOPLE WHO BUY THINGS FOR THEIR DIRECT
CONSUMPTION.
Consumer goods and Producer Goods
Consumer goods are those goods that satisfy the wants of a consumer directly.
This lady has bought goods to cook for her family. I.e. this is for direct consumption.
This is an example of a consumer good.
Producer goods are those goods, which satisfy the wants of a consumer indirectly.
This man is buying goods to cook in his hotel. The food he cooks will be consumed
by people who visit his hotel. So he is buying not for his direct consumption but
for the consumption of his customers. This is an example of producer good.
Intermediate goods
Raw materials, Fuels, power, machinery etc.
are used by Producers
for further production
of final goods and services,
these are called
intermediate
goods
E.g
Single use consumer goods are goods that can be used only once by a consumer e.g.
Bread, milk, egg, fruits etc.
Single use producer goods are goods that can be used only once in the production
process. E.g. Raw materials like sugar cane in the production of sugarcane juice, Once
this sugar cane is crushed for its juice it cannot be used again.
Durable USE Goods
Durable goods are those goods that can be used again and again for a long time.
Private GOODs
All Goods that are privately owned and are only enjoyed by individuals are called
Private goods.
• Private garden
Public goods
Public goods
are those goods
which are owned
and enjoyed
by the society as a whole.
Production
Consumption
investment
Ex. 1
1.Which of the following are goods.
a. Goods
b. Services