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In economic terms, a good is a tangible or material element designed to meet some need of the public. In addition, it can be acquired in the market in exchange for a consideration .

That is, for the economy, a good is an object that provides utility. Thus, the consumer can obtain it by paying an assigned (or agreed) rate.

It should be noted that the goods have a certain level of scarcity. For that reason, a price is assigned to distribute the available units among the plaintiffs .

Generally, assets have their own economic value, which in turn makes them susceptible to being valued in monetary terms. In other words, they are credited with an acquisition price in the market.

Unlike the concept of service , in this case we would talk about something that being tangible can be possessed and sometimes has the ability to be enduring. That is, the good can be enjoyed long after being acquired.

Another important point to comment is that different products can be found for people with less economic resources (in the case of so-called inferior goods ) or of greater economic power ( luxury goods ).

Types of goods

There are many types of goods  according to their degree of scarcity, their function, their degree of transformation, the ease of access to them or their relationship with income, among others. Thus, the main categories are as follows:

  • Movable property: Those that can be moved, such as disks, clothes or cars.
  • Real estate: They cannot change location. Therefore, they are marketed in the market where they are produced, as is the case with homes.
  • Complementary goods: They are usually acquired jointly, as a firearm and ammunition.
  • Substitute goods: They are in the same market and competing to meet the same needs and desires, such as different types of public transport.
  • Consumer good: It will be used by the final consumer and not within the process of producing other merchandise. This is the case, for example, of toys.
  • Capital goods: Case opposite to the previous one, since they are destined for the subsequent production of other goods and not for consumption. We refer, for example, to the machinery of a textile factory.

 

by Abdullah Sam
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