Goods In Economics

In Economics, goods are objects or things which can satisfy our wants. These can be classified on the basis of tangibility and price.

On the basis of tangibility

Tangible goods:

These can be seen and/or touched. Examples: Book, furniture, table

Intangible goods:

These cannot be seen or touched. However, they can be felt by our senses. Examples: Services, goodwill

On the basis of price

  • Free goods: Exist in plenty and are freely available. They are a gift of nature and one need not pay a price for the same. Examples: Air and sunshine. Therefore, these goods do not have an exchange value.
  • Economic goods: Scarce and can be obtained only on payment. They are limited and generally manmade. Therefore, these goods have an exchange value.

On the basis of use

  • Consumer goods: Used by people to satisfy their wants. Examples: Cloth, watch, rice
  • Producer goods: Used in the production of other goods and services. Examples: Materials, fuels, factory buildings
  • Intermediate goods: Used for the production of other goods. Examples: Raw materials, electricity
  • Final goods: Produced for final consumption and investment. Example: Wood used as fuel.

On the basis of ownership

  • Private goods: A private good is one which is consumed by one individual and cannot be simultaneously used by another.
  • Public goods: Public goods are used by a group of individuals.


In Economics, utility is defined as the capacity of a commodity or service to satisfy human wants. In simple words, it can also be called the want-satisfying capacity of a commodity or service.

Value and Price

Value is the utility of a commodity. However, in Economics, it is explained in two senses—value-in-use and value-in-exchange. Value-in-use means the satisfaction obtained from a commodity.


The term wealth means money, properties and gold. In Economics, wealth is used to describe all things
which have value and possess utility, scarcity and transferability.

Characteristics of wealth: Wealth possesses utility. It is scarce. Supply is less than its demand. It is transferable which means the change of ownership. Externality is another quality of wealth.

Kinds of wealth

  • Personal wealth: It is possessed by individuals such as land and building.
  • National wealth: It includes wealth of all individuals of the community and public property such as roads and parks.
  • International wealth: Wealth which belongs to all nations is called international wealth such as IMF and UNO.


It is the well-being or satisfaction by a human for possessing wealth. Human welfare is classified as economic welfare and non-economic welfare. Economic welfare shows the part of human welfare which can be measured in terms of money. Non-economic welfare is the one which cannot be measured in terms of money such as environment, law and order, and social relations.

Micro and Macro Economics

  • The term ‘micro’ was derived from the Greek word ‘mikros’ which means ‘small’. Microeconomics studies the economic relationships or economic problems of an individual firm, household or consumer. It is concerned with the determination of output and price for an individual firm or industry.
  • The term ‘macro’ is derived from the Greek word ‘macro’ which means large. Macroeconomics studies economic relationships or economic problems of the economy as a whole. It is concerned with the determination of the aggregate output and general price level in the economy as a whole



Public Revenue

Central Banking

Commercial Bank

Consumer Awareness

Elasticity of Demand

Meaning and Functions of Money

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