Consumer goods
Also called: Finished consumer goods, Consumption goods · Topic: National Income Accounting: GDP, GVA and Welfare · NCERT: Class 11, Ch 1 "Indian Economy on the Eve of Independence"; Class 11, Ch 2 "Indian Economy 1950-1990"; Class 11, Ch 8 "Comparative Development Experiences of India and its Neighbours"; Class 12, Ch 2 "National Income Accounting"; Class 12, Ch 1 "Introduction (Microeconomics)"
Meaning
Consumer goods are final goods and services that are used up to satisfy wants directly once the final consumer buys them. Examples are food, clothing and recreation services. They do not go through any further stage of production. Whether a good is a consumer good depends on how it is used, not on the good itself.
Example
Tea leaves that a family buys to brew tea at home are a consumer good. The same tea leaves bought by a restaurant are an intermediate good, because the restaurant adds value to them and sells cups of tea.
Don't confuse with
- Capital goods: machines and tools help produce other goods over many years. They are not used up for direct satisfaction.
- Intermediate goods: these are inputs that are used up in making other goods. They are not bought for final use.
Related concepts
- Final goods
- Intermediate goods
- Consumer durables
- Capital goods
- Double counting
- Stock variable
- Flow variable
- Investment
- Gross investment
- Depreciation