Goods

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In economics, goods are materials that satisfy human desire and provide usability, for example, to consumers who make satisfactory product purchases. A general difference is made between property intangibles, and services, which are non-physical. Good stuff might be useful consumables for people but rare in relation to the demand, so human effort is needed to get it. Conversely, free goods, such as air, are naturally abundant in stock and there is no need for conscious effort to obtain them. Personal items are items such as televisions, living room furniture, wallets, cell phones, almost anything that is owned or used everyday that is not related to food. Commercial goods are interpreted as any real product produced and then supplied for supply for use in the trading industry. Commercial goods can be tractors, commercial vehicles, moving structures, aircraft and even roofing materials. Commercial and personal items as a category are vast and cover almost everything a person sees from the moment they wake up in their home, on their way to work and arrive at work.

Commodities can be used as a synonym for economic goods but often refer to marketable raw materials and key products.

Although in economic theory all goods are considered real, in reality a certain class of goods, such as information, takes only an intangible form. For example, among other items the apple is a tangible thing, while the news belongs to an intangible goods class and can be seen only with tools such as print or television.

Video Goods

Utilitas dan karakteristik barang

Goods can increase or decrease their utility directly or indirectly and can be described as having marginal utility. Some things are useful, but not rare enough to have monetary values, such as Earth's atmosphere, these are referred to as 'free stuff'.

In economics, the bad is the opposite of the good. Ultimately, whether an object is good or bad depends on each customer and therefore, it is important to realize that not all goods are good all the time and not all goods are goods for everyone.

Maps Goods

Type of item

The diversity of goods allows their classification into different categories based on typical characteristics, such as tangibility and (ordinal) relative elasticity. Real goods like apples differ from intangibles such as information because of the impossibility of a person to physically hold the latter, while the former occupies the physical space. Intangible goods differ from services in the final (intangible) merchandise which may be transferable and tradable, whereas the service can not.

Price elasticity also differentiates the type of goods. Elastic goods are goods that have a relatively large quantity change due to relatively small price changes, and therefore tend to be part of the family of replacement goods; for example, when pen prices rise, consumers may buy more pencils instead. Non-elastic items are few or no replacements, such as tickets for major sporting events, original works by renowned artists, and prescription drugs such as insulin. Complementary goods are generally more inelastic than those in a substitute family. For example, if the increase in beef prices leads to a decrease in the quantity of meat demanded, it is likely that the amount of hamburger bread demanded will also decrease, even if there is no change in the price of bread. This is because hamburger and beef buns (in Western culture) are complementary items. It is important to note that goods considered as complementary or substitute are relative associations and should not be understood in a vacuum. The degree to which a good is a substitute or a complement is dependent on its relation to other goods, rather than intrinsic characteristics, and can be measured as cross-demand elasticity using statistical techniques such as covariance and correlation.

The following chart illustrates the classification of goods according to their exclusivity and competitiveness.

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Merchandise trade

Goods can be sent physically to the consumer. Intangible goods can only be stored, shipped, and consumed through the media.

Goods, both tangible and intangible, may involve transferring ownership of the product to the consumer. Services typically do not involve the transfer of ownership of the service itself, but may involve transfer of ownership of goods developed or marketed by the service provider in the course of the service. For example, the sale of storage-related goods, which may consist of storage warehouses, storage containers, storage buildings as physical goods or storage stocks such as boxes, bubble wrap, tapes, bags and the like constituting consumables, or distributing electricity among consumers is a service provided by utility companies. This service can only be experienced through the consumption of electrical energy, which is available in various voltages and, in this case, is the economic goods produced by electric utility companies. While the service (ie, the distribution of electrical energy) is an overall fixed process in the ownership of the electricity service provider, the goods (ie, electrical energy) are objects of ownership transfer. Consumers become electric energy owners by buying and can use them for legitimate purposes just like other items.

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See also

• Fast moving consumer goods
• End item
• Intangible assets
• Intangible item
• List of economic topics
• Goods and services
• Service (economy)
• Tangible property

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Note

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References

• Bannock, Graham et al. (1997). Economic Dictionary , Penguin Books.
• Milgate, Murray (1987), "goods and commodities," The New Palgrave: Economic Dictionary , v. 2, p. 546-48. Includes the use of terms in the economy historically and contemporary.

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