Classification Of Goods And Services
Economics notes
Classification Of Goods And Services
➡️ Goods are tangible items that can be bought and sold, such as food, clothing, and cars. Services are intangible activities that are provided by people or businesses, such as haircuts, medical care, and legal advice.
➡️ Goods are typically produced in factories or other production facilities, while services are typically provided by individuals or businesses.
➡️ Goods are typically sold in physical stores or online, while services are typically sold through contracts or agreements.
➡️ Goods are typically priced based on their cost of production, while services are typically priced based on the value they provide to the customer.
➡️ Goods and services are both important components of the economy, as they provide consumers with the products and services they need to live their lives.
What is the difference between consumer goods and capital goods?
Consumer goods are products that are used for personal consumption, such as food, clothing, and electronics. Capital goods, on the other hand, are used to produce other goods and services, such as machinery, equipment, and buildings.
What are intermediate goods and how do they differ from final goods?
Intermediate goods are products that are used as inputs in the production of other goods and services. They are not sold directly to consumers, but rather to businesses that use them to produce final goods. Final goods, on the other hand, are products that are sold directly to consumers for their personal use.
What is the difference between durable and non-durable goods?
Durable goods are products that are expected to last for a long time, such as cars, appliances, and furniture. Non-durable goods, on the other hand, are products that are used up quickly or have a short lifespan, such as food, clothing, and toiletries.