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.
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
