We all purchase and consume goods every day.
Most of those goods satisfy a need or want and are called consumer goods. They are different than those goods that are used as input to produce other goods. In this lesson, you will learn about types of consumer goods and take a quiz.
Consumer Goods Defined
Consumer goods are tangible goods that are purchased for direct consumption to satisfy a human need or want. This is in contrast to producer goods, which are purchased as an input to produce another good.As I said, consumer goods are those that are purchased for direct consumption.
‘Consumption’ in this context does not necessarily mean consume, as in eat. There are plenty of consumer goods that no one would consider eating, such as clothes. Clothing is a good purchased to satisfy a human need – the need to be clothed.Another way to identify a consumer good is to think of a production line.
The goods used as inputs at the beginning of the production line are not consumer goods; these would be considered capital or producer goods and might include cloth, plastic, or other materials. The good that is produced at the end of the production line (the clothing item) is a consumer good. It’s a final end product made for a buyer to consume.Consider this image:
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