Goods - What are they? types, classification, examples, and more

Goods

Useful or beneficial objects that generate a certain value or utility to those who use or possess them.

What are goods?

Goods are useful or profitable objects that generate a certain value or utility to whoever uses or possesses them. In the economic sense, goods are produced to be exchanged; in this way, a good is a commodity.

The goods can be tangible or intangible and can be sued by natural or legal persons. The term derives from the Latin bene, meaning "well."

For a good to be considered economic, it must require a certain demand by a certain market, be scarce and limited, and also have an exchange value.

Types of goods

There are different types of assets, including:

• Real estate: those that cannot be moved from the site where they are or where they were built. This includes buildings, houses, offices, land, and others.
• Movable property: those that can be moved from one place to another, some more easily or cheaply. This includes computers, televisions, cars, etc.
• Consumer goods: those intended for a final consumer. This type of good is not intended to be used in a production process to produce other goods, but rather will be used by the consumer. For example, shoes or cars.
• Intermediate goods: those that are manufactured to be used as raw material in production processes, to obtain other goods that can also be intermediate or final. For example, a fabric, which is manufactured to make clothes.
• Capital goods: those that are also used to produce, although, unlike intermediate goods, capital goods include machinery, tools, and others that are useful for the product manufacturing process. In addition, they usually have a significant impact on the efficiency with which the process is carried out.

The character of the property, that is, who owns the good, can also be added to the classification:

• Public goods: those that do not have property or whose property belongs to the State, for example, a park on public roads.
• Private goods: those that have a property title or belong to only one person, for example, a house.

examples of goods

Examples of goods are found in our day-to-day since a good includes everything that brings us some benefit when using it, just as the assets of a company do.

Our car, our house, office, refrigerator, computer, or our smartphone are goods with which we interact daily and that provide us with utility or satisfaction.

 

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