Tiêu đề Economics-Full.pdf ✅

Terminologies – goods, service, utility, value, wealth, price, equilibrium, want, welfare Compiled by - Pratiksha Sharma , AFU, Rampur
1. Good: • Anything that satisfies human want is called good. • Anything material , exterior to man and useful to him is known as good. • Goods are tangible(seen and touched) and material outcome of production. • Example: Food grains, pulses, machinery, fertilizers, cloth, book etc. • Immaterial goods are referred as services. • Some items of consumption which causes dissatisfaction or definite harm to consumers are called economic bads. Ex liquor, tobacco, drugs etc. Classification or types of goods A) Free goods and economic goods i) Free goods: • Are free of cost. • Available in plentiful supply which can be obtained without conscious efforts. • Are external and useful. • Example: fresh air, sunshine etc Compiled by - Pratiksha Sharma , AFU, Rampur
ii) Economic goods: • Are things or material which are useful to man and need to be paid. • Are scarce. • These are limited and generally man made. • Conscious effort is needed to obtain economic good. • Example: food grain, building etc. • In economics we are only concerned with economic goods. B) Consumer’s and Producer’s good i) Consumer’s goods: • Used for direct satisfaction of human wants. • It may be short or long lived. • These are consumed by consumer directly. • Example: food, clothing etc. • Also known as goods of first order. Compiled by - Pratiksha Sharma , AFU, Rampur
ii) Producer’s goods: • Goods that help us in production of another good. • Give satisfaction indirectly by producing other goods which will yield final satisfaction. • Example: sugarcane as a raw material for the production of sugar, machinery tools etc. • Referred as goods of second order. C) Private and Public goods i) Private goods: • The goods those are under legal and authorized possession of an individual. • Example: books, cloths, buildings etc. ii) Public goods: • An economic good supplied, without direct payment to people by the government. • Example: defense system, street lighting, parks etc. Compiled by - Pratiksha Sharma , AFU, Rampur