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Different Types of Final Goods

They are of 2 Types:

  • Consumer Goods
  • Consumer Durables

 

Consumer Goods

They are also called Consumption Goods

These are goods which are purchased by consumer for final consumption

Example - Food, Cloth

They can be services also.

Example - Recreation Service like Movie Tickets

 

Consumer Durables

They are also consumed by a consumer but have a longer life.

Example - TV ,Car

These undergo wear and tear with normal use

They may need to be repaired or replaced

(If we purchase a car, we may have to spend money on its maintenance, insurance)

Difference

Consumer Goods Consumer Durables
They are purchased for immediate consumption.  They are purchased for longer use
They are purchased more frequently They are purchased less number of times because they last more
There are no or very little expenses on their  They undergo wear and tear and money need to be spent 
maintenance as they last for very less time. for its maintenance and preservation.
Example - Food, Cloth Example - TV, Car

 

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NCERT Questions

No questions in this part

 

Other Books

No questions in this part

 


Transcript

Different Types of Final Goods They are of 2 Types: Consumer Goods Consumer Durables Consumer Goods They are also called Consumption Goods These are goods which are purchased by consumer for final consumption Example - Food, Cloth They can be services also. Example - Recreation Service like Movie Tickets Consumer Durables They are also consumed by a consumer but have a longer life. Example - TV ,Car These undergo wear and tear with normal use They may need to be repaired or replaced (If we purchase a car, we may have to spend money on its maintenance, insurance) DIFFERENT TYPES OF GOODS INTERMEDIATE GOODS FINAL GOODS Used for Production Goods purchased by Factory Used for Resale Goods purchased by Shop Used for Consumption Consumption goods They are of 2 types Consumer Goods (If consumed immediately) or Consumer Durables (if have longer use) Used for Investment Capital Goods NCERT Questions No questions in this part Other Books No questions in this part

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years and a teacher from the past 16 years. He teaches Science, Economics, Accounting and English at Teachoo