Consumption Goods- The goods which are purchased by consumer to satisfy their wants are called consumption goods. These goods satisfy human wants directly such as pen, pencil, bread, butter etc.
These goods can be further divided into following categories-
Durable Goods: These are the goods which can be used again and again in consumption over a long period of time. Such as T.V., Computer, Fan etc.
Semi-durable Goods: The goods which can be use for limited period of time are known as Semi durable Goods. These goods have a life span of around one year. Such as clothes, crockery, shoes etc.
Non-durable Goods: The goods which are used up in a single act of consumption are called non durable Goods or perishable good.
Services –Services are produced and consumed simultaneously; it means there is no time gap between their production and consumption. These are rendered for direct consumption. Such as services of doctor, teacher etc.
Capital goods - The goods which help in production of other goods and services and added in the capital stock of a country at the end of an accounting year are called capital goods. It includes durable goods like car, fridge, road etc. Stock of semi finished, finished goods and raw material are also part of it.
