The commodities which can satisfy the human wants are called goods.
The goods are tangible, transferable, exchangeable and storable.
For example, car, cloths, and buildings, mobile, camera, computer etc. are the goods.
The goods must have the physical existence.
Intangible work of the human beings which can satisfy the human wants is the service.
The work of doctor, engineers, singers and musicians etc. are the services.
Differences between goods and services are as follows:
Basis |
Goods |
Services |
Existence |
The goods have physical existence; it has its own form, shape and size. |
The services do not have physical existence. It does not have its own form, shape and size. |
Transfer ability |
Goods can be transferred from one place to another and one person to the other. |
Services cannot be transferred from one place to another and one person to the other. |
Visibility |
Goods are visible. |
Services are invisible. |
Time |
There may be time lag between production and consumption of goods. |
There is not time lag between production and consumption of services. |
Storing |
Goods are storable for future consumption. |
Services are not storable for the future. |
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Accounting Equation |
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Basic Journal Entries in Nepali |
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Basic Journal Entries |
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Journal Entry and Ledger |
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Ledger |
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Subsidiary Book |
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Cash Book |
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Trial Balance & Adjusted Trial Balance |
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Bank Reconciliation Statement (BRS) |
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Depreciation |
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Final Account: Class 11 |
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Adjustment In Final Account |
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Capital and Revenue |
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Single Entry System |
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Non-Profit Organization |
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Government Accounting |
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Goswara Voucher (Journal Voucher) |
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The major types of goods in economics are explained below:
The goods having positive or direct relationship between the demand and income of the consumer are called normal goods.
The demand of the normal goods increases with the increase in income of the consumer and vice versa.
The goods having inverse relationship between the demand and income of the consumer are called inferior goods.
The demand of the inferior goods increases with the decrease in income of the consumer and vice versa.
The special types of inferior goods having positive relationship between price and demand of the goods are called Giffen goods.
All Giffen goods are inferior goods and all inferior goods are not Giffen goods.
The competitive goods which can replace the demand of other goods are called substitution goods.
Tea and coffee, Coca Cola and Pepsi etc are some of the examples of substitute goods.
The goods which are jointly used to satisfy the wants are the complementary goods.
Pen and ink, petrol and car etc are the examples of complementary goods.
The goods which are owned by the society collectively is called public goods.
They have the characteristics of non-excludable and non-revelry.
The goods which are owned by individuals or private sector is called private goods.
Merit goods
Merit goods are those goods and services that the government feels that people will under-consume.
They ought to be subsidized or provided free of cost.
Government and private sector provide merit goods and services.
Example of merit goods are health service, education, training for job, vaccination for children etc.
Luxurious goods mean costly goods more than income level.
iPhone is luxurious for those persons who earn Rs 32,000 per month (₹ 20,000 or $270).
But, who earns Rs 400,000 per month (₹ 250,000 or $3,370), iPhone is not luxurious goods.
Some luxurious goods are iPhone, 75 inches LED TV, Rolex watch, Rayban goggles, SUV (car), lunch and dinner in 5 star hotel etc.
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