Goods and Service: Types of Goods

Goods and Services

(A) Goods

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.

(B) Services

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:

Differences between Goods and Service

#####

#####

Types of Goods (Classification of the Goods)

The major types of goods in economics are explained below:

Normal goods

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.

Inferior goods

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.

Giffen goods

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.

Substitute 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.

Complementary 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.

Public goods

The goods which are owned by the society collectively is called public goods.

They have the characteristics of non-excludable and non-revelry.

Private goods

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

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.

***** #EPOnlineStudy *****

Thank you for investing your time.

Please comment on article.

You can help me by sharing this article at your social media platform.

Jay Google, Jay YouTube, Jay Social Media

जय गूगल, जय युट्युब, जय सोशल मिडिया