Types of Goods

Goods can be classified as consumer goods or capital
goods

Consumer Goods are those physical items that are
used by individuals or groups in the household sector.
E.g. Bed, PSP, cell phone, mirror, lamp

Capital Goods – human made goods which are used in
the production of other goods and services. Capital
goods are used by firms in the producer sector. E.g.
Photocopier, company car, bulldozer.
Intermediate/ Semi – Finished Goods
 Goods
that are used as part of the production
process and, while they are finished goods they
are not of any use to anyone.
 They
are a type of capital good.
 E.g
A door is a finished good but it is not much use
unless it is hung in a doorway.
 Other
examples, car tyres, fabric, watch straps,
zips buttons.
Consumer and Capital Goods
 Some
goods can be both consumer
goods and capital goods. What they
actually are depends on the purpose
they are being used for.
A
pen can be a capital good when being
used in an office, but used at home it is a
consumer good.