Q2. What are types of goods?
Ans. Types of goods are:
- Consumption Goods: The goods which are consumed by the consumers for satisfy their wants are called consumer goods. Consumption goods can be classified into four categories as under durable consumer goods, semi durable consumer goods, non durable or single use consumer goods and services.
- Capital Goods: Capital goods are those goods which are repeatedly used in the process of production of further goods and services for several years. These are the fixed assets of the producers and which are of high value. Example: plants and machinery.
- Intermediate Goods: The goods which are within the boundary line of the production value is yet to be added to these goods and these goods are yet not ready for use by their final users for example raw materials.
- Final Goods:These are those goods which have crossed the boundary line ofproduction and are ready for use by their final users, value is not to be added in these goods.The goods which are used by consumer are called final consumer goods. Example: cloth, bread. The goods which are used by producers are called to producer goods. Example: machinery, tractor, plant etc.