Question

Discuss five categories of goods and services produced in an economy

Answer 1

1. free goods and economic goods-free goods are those goods that are available in abundance as gifts of nature and have no price. Economic goods are those that are scarce in supply and have money value, thus human effort is required to obtain them.
2. producer goods and consumer goods –producer goods are those produced to be used used in producing others. They include Machines, equipments and tools such as tractors andhammers. Consumer goods are goods that are mainly usable by the final consumer (user) .They include food, clothing etc
3. perishable goods and durable goods-perishable goods are goods that go bad easily unless stored using special facilities. They include tomatoes, fruits and flowers. Durable goods are those that will continue giving service for a long time and can resist spoilage caused by agents such as wear and tear.
4. public goods and private goods-public goods are those that belong to no one in particular, but are owned by the government or by all of us eg roads, airports, rivers etc, private goods are owned by individuals or group of individuals in their private capacities eg private schools.
5. material goods & commodities that are tangible like food, books, chairs etc non material goods are services (intangible items ) such as teaching, nursing etc