Consumer and Capital Goods #4

Types of Goods
Goods can be classified as consumer goods or capital
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.
pen can be a capital good when being
used in an office, but used at home it is a
consumer good.