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 GOODS-
classifications
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 Non-
transferable goods
Personal & impersonal
Goods
Private & Public goods
Goods – further
classifications