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    Types of Economic Goods

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    Kenny Charles
    The document discusses different types of goods in economics. It describes final goods, consumption goods, capital goods, and intermediate goods under macroeconomics. It also discusses inferior goods, normal/superior goods, luxury goods, prestige goods, Giffen goods, complementary goods, and substitute goods under microeconomics. The key types of goods discussed are final goods which satisfy consumer wants directly, capital goods which are used to produce other goods, and intermediate goods which are inputs used in further production.

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    Types of Economic Goods

    Uploaded by

    Kenny Charles
    49 views2 pages
    The document discusses different types of goods in economics. It describes final goods, consumption goods, capital goods, and intermediate goods under macroeconomics. It also discusses inferior goods, normal/superior goods, luxury goods, prestige goods, Giffen goods, complementary goods, and substitute goods under microeconomics. The key types of goods discussed are final goods which satisfy consumer wants directly, capital goods which are used to produce other goods, and intermediate goods which are inputs used in further production.

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    Economic Goods

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    Types of economic goods

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    The document discusses different types of goods in economics. It describes final goods, consumption goods, capital goods, and intermediate goods under macroeconomics. It also discusses inferior goods, normal/superior goods, luxury goods, prestige goods, Giffen goods, complementary goods, and substitute goods under microeconomics. The key types of goods discussed are final goods which satisfy consumer wants directly, capital goods which are used to produce other goods, and intermediate goods which are inputs used in further production.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    49 views2 pages

    Types of Economic Goods

    Uploaded by

    Kenny Charles
    The document discusses different types of goods in economics. It describes final goods, consumption goods, capital goods, and intermediate goods under macroeconomics. It also discusses inferior goods, normal/superior goods, luxury goods, prestige goods, Giffen goods, complementary goods, and substitute goods under microeconomics. The key types of goods discussed are final goods which satisfy consumer wants directly, capital goods which are used to produce other goods, and intermediate goods which are inputs used in further production.

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    © All Rights Reserved
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    Download as pdf or txt
    of 2

    6/19/2019 Types of Goods : Economics

    Types of Goods : Economics


    April 14, 2016

    A) Macroeconomics

    Final good Goods used for final consumption.


    Used by the end-consumers/users. It satisfies customer’s wants directly
    Known as final goods because once it has been sold it passes out of the active economic flow.
    No further transformation is made by any producer.
    May undergo transformation process by purchaser but that is not come under economic activity
    as it doesn’t yield anything.
    E.g.: tea leaves used at home to make drinkable tea, milk etc.

    Consumption goods 

    Consumed by ultimate consumers


    Non-durable: perishable in nature, e.g. food, clothing etc.
    Consumer-Durable: car, furniture, television etc.

    Capital goods

    machines, implements, tools


    E.g. Printer
    Make the production of other commodity feasible.
    Durable in nature

    Intermediate good

    Goods that are used for further production is called intermediate goods also called inputs.
    It is further goes into transformation process.
    It adds earning in active economic activity.
    Tea leaves used by restaurant to make drinkable tea
    Therefore, Types of goods is not depending on nature of goods but it depends on economic
    nature of its use.
    Goods used for the production of other goods
    Goods used by producers as material inputs
    Plants, machinery, factory
    E.g. cotton yarn used to make cloth,
    Wood used to make furniture etc.

    B) Micro economics 

    Inferior good
    Inferior goods are goods whose demand decreases as income increases.
    Increase in income causes a fall in demand.
    E.g. When income of an individual increases, spends less on cheap cloth.
    Goods are cheap in nature.
    Potatoes, baked beans etc.

    https://www.sscadda.com/types-of-goods-economics 1/2
    6/19/2019 Types of Goods : Economics

    Superior good/ normal goods 

    Demand increases as income


    increases increase in income cause to increase in demand
    expensive in nature
    e.g. vacation trips

    Luxury goods

    Demand increases more than proportionally as income rises.


    Goods has good quality, durability and remarkably superior in nature.
    E.g. Gold ornaments

    Prestige goods 

    Goods which give high prestige, status and value these goods are limited in nature
    e.g. antique collections

    Giffen goods 

    Increase in price causes increase in demand.


    E.g. Wheat

    Complementary goods 

    Goods which are used together.


    E.g. Pencil and sharpener

    Substitute goods

    Goods which can used in place of other.


    E.g. Pepsi and coke

    https://www.sscadda.com/types-of-goods-economics 2/2

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