Types of Goods

• Consumer Goods
Consumer goods are products purchased by individuals for personal use. They are further categorized into durable and non-durable goods. An example of durable consumer goods is a washing machine, which is used over a long period of time. Non-durable consumer goods, on the other hand, are products that are consumed quickly, such as food and beverages.

• Capital Goods
Capital goods are physical assets used by companies to produce other goods and services. These goods are not directly consumed by end-users but are essential for the production process. Machinery, equipment, and buildings are examples of capital goods. They help increase the efficiency and productivity of a business.

• Intermediate Goods
Intermediate goods are used as inputs in the production of other goods. They are not sold directly to consumers but are used in the manufacturing process. Raw materials, components, and semi-finished products are examples of intermediate goods. These goods undergo further processing before becoming final products.

• Public Goods
Public goods are non-excludable and non-rivalrous in consumption. This means that individuals cannot be excluded from using them, and one person's consumption does not reduce the availability for others. Examples of public goods include street lighting, national defense, and public parks. These goods are often provided by the government for the benefit of society as a whole.

• Merit Goods
Merit goods are products or services that have positive externalities and are under-consumed by individuals. These goods provide benefits to society beyond the individual consumer. Examples of merit goods include education, healthcare, and clean energy. Governments often intervene to ensure the provision of merit goods to promote overall welfare.