All what is produced can be classified into goods and services. Goods and services produced are as a result of input or resources used in the course of production.
These goods and services are classified as follow:
These are goods that satisfies our wants or provide utility directly. There are two types of consumer goods.
- Durable consumer goods
- Non-durable consumer goods
- Durable consumer goods
They are goods which are enjoyed over a long period of time. They depreciate gradually as a result of age and usage. Example: radio set, television set, computer, car etc.
- Non-durable consumer goods
They get finished as they are used or consumed. Example food stuffs, drinks etc.
- Producer Goods or Capital Goods
These are goods which are produced to be used in the production of further goods and services. They are not wanted for their own sake but for the sake of producing further goods and services. Example factory buildings, machinery, raw materials etc.
- Public or Collective Goods
These are goods which are provided by the state or the government for the benefit of the society. They are financed by the taxpayers.
The consumption of these goods by one person does not deprive the other persons from consuming them. No additional cost is incurred by other consumers. Examples include; public schools, pubic hospitals, national defense, street light etc.
These are goods which the state considered to be highly desirable to the welfare of her citizens. The merit goods command a price, possess utility and the society themselves. Examples include; health care, education, housing etc.
These are goods which have market or exchange value. They also possess utility, opportunity cost and a cost of production. They are scarce relative to demand. Example: food, dresses, cars, houses etc.
They are goods whose supply is unlimited. The demand or them have no limit. They have no cost of production, no price and are gifts of nature. Example: sand in the desert, water in the sea, fresh air etc.
- Services (Intangible Goods)
These are items which cannot be seen or touched. They do not have weight but yield satisfaction to the consumers. Eg: teaching, transportation etc.
NB: Consumer goods and producer goods are tangible economic goods while services are intangible economic goods.
