Economic Good
An Economic Good is an good that can satisfy human wants, providing utility, and is scarce in relation to its demand, requiring human effort to obtain.
- Context:
- It can (often) be a Business Product.
- It can include items that satisfy human wants and provide utility to a consumer.
- It can be distinguished from free goods which are in abundant supply and require no effort to obtain.
- It can include private goods like televisions and consumer goods such as microwave ovens.
- It can be a Commodity in the context of marketable raw materials or primary products.
- It can encompass both tangible items like apples and intangible forms like information.
- ...
- Example(s):
- Consumer Goods, such as: a television or a microwave oven.
- Intermediary Goods, such as: textiles, used as intermediate goods in the production of other items.
- ...
- Counter-Example(s):
- See: Goods, Alan V. Deardorff, Primary Sector of The Economy, Television, Economics, Want, Murray Milgate, New Palgrave Dictionary of Economics, Alfred Marshall, Principles of Economics (Marshall), Utility, Consumer, Product (Business).
References
2024
- (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Goods Retrieved:2024-1-15.
- In economics, goods are items that satisfy human wants [1] and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not transferable. [2] A good is an "economic good" if it is useful to people but scarce in relation to its demand so that human effort is required to obtain it.[3] In contrast, free goods, such as air, are naturally in abundant supply and need no conscious effort to obtain them. Private goods are things owned by people, such as televisions, living room furniture, wallets, cellular telephones, almost anything owned or used on a daily basis that is not food-related. A consumer good or "final good" is any item that is ultimately consumed, rather than used in the production of another good. For example, a microwave oven or a bicycle that is sold to a consumer is a final good or consumer good, but the components that are sold to be used in those goods are intermediate goods. For example, textiles or transistors can be used to make some further goods.
Commercial goods are construed as tangible products that are manufactured and then made available for supply to be used in an industry of commerce. Commercial goods could be tractors, commercial vehicles, mobile structures, airplanes, and even roofing materials. Commercial and personal goods as categories are very broad and cover almost everything a person sees from the time they wake up in their home, on their commute to work to their arrival at the workplace.
Commodities may be used as a synonym for economic goods but often refer to marketable raw materials and primary products. [4]
Although common goods are tangible, certain classes of goods, such as information, only take intangible forms. For example, among other goods an apple is a tangible object, while news belongs to an intangible class of goods and can be perceived only by means of an instrument such as printers or television.
- In economics, goods are items that satisfy human wants [1] and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not transferable. [2] A good is an "economic good" if it is useful to people but scarce in relation to its demand so that human effort is required to obtain it.[3] In contrast, free goods, such as air, are naturally in abundant supply and need no conscious effort to obtain them. Private goods are things owned by people, such as televisions, living room furniture, wallets, cellular telephones, almost anything owned or used on a daily basis that is not food-related. A consumer good or "final good" is any item that is ultimately consumed, rather than used in the production of another good. For example, a microwave oven or a bicycle that is sold to a consumer is a final good or consumer good, but the components that are sold to be used in those goods are intermediate goods. For example, textiles or transistors can be used to make some further goods.
- ↑ Quotation from Murray Milgate, 2008, "Goods and Commodities". In: Palgrave Macmillan (eds) The New Palgrave Dictionary of Economics. Palgrave, Macmillan, London., in referencing an influential parallel definition of 'goods' by Alfred Marshall, 1891. Principles of Economics,1961, 9th ed.Section I, page 54, Macmillan.
- ↑ Alan V. Deardorff, 2006. Terms Of Trade: Glossary of International Economics, World Scientific. Online version: Deardorffs' Glossary of International Economics, "good" and "service".
- ↑ Samuelson, P. Anthony., Samuelson, W. (1980). Economics. 11th ed. / New York: McGraw-Hill.
- ↑ Alan V. Deardorff, 2006, Deardorffs' Glossary of International Economics "commodity".