Occupations

A chart showing classification of occupations

Classification of goods

Goods can be classified in various ways:

i. Consumer goods and producer goods

Consumer Goods: These are goods produced for final consumption by individuals. Examples: foodstuffs, radio, television, furniture.

Producer Goods (Capital Goods): These are goods used to produce other goods. Examples: machinery, buildings, roads, railways.

ii. Perishable goods and durable goods

Perishable Goods: These are goods that can easily decay or spoil in a short time. Examples: milk, meat, flour, fruits, vegetables.

Durable Goods: These are goods that last for a long period without spoiling. Examples: buildings, machines, furniture.

iii. Private goods and public goods

Private Goods: These are goods owned and used by individuals or families. Examples: personal vehicles, private houses.

Public Goods: These are goods owned and enjoyed collectively by the public. Examples: roads, public parks, defense services.

iv. Intermediate goods and final goods

Intermediate Goods: These are goods that are still in the production process (not yet finished). Examples: raw materials, semi-finished products.

Final Goods: These are goods that are fully produced and ready for use. Examples: finished clothes, bread, mobile phones.

v. Free goods and economic goods

Free Goods: These are goods that are provided freely by nature without human effort. Examples: air, sunshine, rainfall, sea water, natural forests.

Features of free goods:

1. They are not made by human effort
2. They are not scarce (they are abundant)
3. They possess utility (they satisfy human wants)
4. They lack exchange value (they cannot be sold or bought)
5. They are not transferable in ownership

Economic Goods: These are goods that are produced through human effort and have value. Examples: cars, furniture, machines, clothes.

Features of economic goods:

1. They are produced by human efforts
2. They are scarce in supply (not freely available)
3. They possess utility (satisfy human wants)
4. They have exchange value (can be bought and sold)
5. They are transferable in terms of ownership