GOODS AND SERVICES

                         GOODS AND SERVICES

GOODS

      *   The material that satisfies human wants and needs is called goods. 

      *   They are tangible. 

      *   They are the materials which are outcome of production. 

SERVICES

        *   The act of the performance that one person can offer to another person

        *   The services are intangible and doesn't owned by anyone. 

        *   They are inseparable variable and perishable. 

    Eg : The services that is provided by Doctors, teachers, engineers, drivers, etc. 

CLASSIFICATION OF GOODS

     I. Based on supply

    II. Based on Transferability

   III. Based on consumption

   IV. Based on durability

          

 I. BASED ON SUPPLY

          a. Economic goods

          b. Free goods

a. Economic goods

          * The goods which are produced through efforts of human and purchased at a price given.

          * Supply of the goods will be less than the demand. 

          * They have the value in use and exchange. 

     Eg : Buildings, machinery, appliances etc.. 

b. Free goods

           * The goods which are freely available in nature. 

           * The supply of these goods will be more than the demand. 

           * There is no efforts needed to secure these goods. 

           * There is no fixed prices for these goods. 

    Eg : Air, sun, rainfall, etc. 

Note : Though the differences between economic goods and free goods are clearly explained, at some situation , due to scarcity of free goods which is being considered as economic goods. 

Eg. Water, sand, etc. 

II. BASED ON TRANSFERABILITY

 III. BASED ON CONSUMPTION

                 a. Consumer goods

                 b. Producer goods

a. Consumer goods

        * The goods which are used by the consumers from which they directly derive the satisfaction by using it. 

        * It is also called as goods of first order. 

   Eg. Pen, dress, cosmetics, etc. 

b. Producer goods

        * The goods which are used to produce good the other goods. 

        * It can be used by both consumers and producers. 

        * They satisfy the wants of consumers indirectly. 

     Eg : Raw materials, machinery, etc. 

Note : In some situations a producer goods become consumer goods according to the usage of that particular good. 

For example : when the milk is used at home, it becomes consumer good at the same time, when it is being used in the industries it becomes producer good. 

IV. BASED ON DURABILITY

                a. Mono period goods

                b. Poly period goods

a. Mono period goods

             The goods which are used only once to satisfy the wants and needs. 

     Eg. Seeds, fertilizers, foods, etc. 

b. Poly period goods

           *  It is also known as durable goods

           *  Those goods which are used several times and again is called as poly period goods. 

     Eg. Machinery, buildings, etc.