Goods

• Goods are anything capable of satisfying a want.
• Desirable things like food, clothing, shoes, cars, houses, etc.
• Some good are free like sunlight, air, and natural water
• Others are paid like TV, clothes.
• Commodities that cause dissatisfaction or definite harm to the consumer called economic bads.
• Examples: liquor, tobacco, drugs.

 Classification of Goods

A. Material and Non-Material Goods

Material Goods: These goods are tangible in nature and can be transferred from one person to another. Examples are mobile phones, motorcycles, television, etc.

Non-material goods: These goods are intangible in nature and do not have shape and size, cannot be touched, and cannot be transferred from one person to another. It refers to the different services receivable. Examples of non-material goods are services provided by doctors, lawyers, teachers, etc.

B. Economic and free goods

Economic goods: These are Produced by man and have price. The supply of economic goods is limited compared to demand (scarce). Example: food items, clothes, etc.

Free goods: These goods are gifts of nature. They are plentiful in supply and have no market price. Example: air, sunshine, etc.

C. Consumer and producer goods

Consumer goods: These are meant for direct consumption-rice, fruits, pen, etc. Consumer goods may be durable or perishable.

a) Durable: These last for a long time and has many uses. They are not in daily demand. Example: cars, TV

b) Perishable: These are of single-use and are in daily demand. Example: milk, fruits

Producer goods: Producer goods are bought by the producers. They are mostly durable but single-use also. Example: raw material, production inputs, machines, etc.

D.Public and private goods

Public goods: These are owned and maintained by the government but are open for public use under some rules and regulations. Example: road, railways, public parks, bridges, etc.

Private goods: No free access for the general public in these types of goods. Example: private house, cars, etc.