What are Consumption goods, definition, types class 12

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Confused What are Consumption goods, types and its definition in national income chapter class 12 CBSE, ISC and State Board.

The discussion here is relevant to the national income chapter of the class 12 CBSE board.

The understanding of consumption goods is very important in calculating the national income.

See, National income = National product

if you don’t know this concept I have discussed it in detail in the below lecture.

National Product includes the sum total of final goods produced in the country.

So, in order to recognize what are final goods and whatnot.

you must have an understanding of what are

  1. Consumption goods
  2. Capital goods
  3. Intermediate goods

I have explained all three topics in detail in below blog post.

Read Here:- What are Capital Goods in National Income chapter

Read Here:- What are Intermediate Goods in National Income Chapter

Let’s first understand what is goods

Definition of Goods in National Income Macroeconomics Class 12 CBSE Board

Define Goods

Good is defined as any object, natural or man-made, or service rendered, that could command a price in the market.

Two Characteristics

  1. good include both physical product and services
  2. it command a price in the market

Note:-

The good which commands a price in the market is also called an ‘economic good’.

Now understand what is Consumption Goods

Definition of Consumption goods in National Income Macroeconomics Class 12 CBSE Board

Goods purchased and own produced for the satisfaction of wants are called consumption goods.

Key Characteristics:-

Everything purchased by a consumer is called consumption goods. because all purchase or own production by a consumer is for his/her satisfaction.

He/she does not have any business purpose out of it.

In other words, consumers will use for a long time or consume immediately what is acquired by them.

  1. Purchase of food, clothes, tv, refrigerator, Vehicle by households (families).
  2. services own produced by families commanding a price in the market.

Classification of Consumption Goods

Consumption goods can be classified as durable and non-durable goods. See whatever a consumer purchase is termed as consumption goods.

Durable Consumer Goods

Goods that yield services over time are called durable consumer goods.

For Example:- Tv, Fridge, Vehicle, washing machine, etc

Non-Durable Consumer Goods

Goods Completely used up at the moment of use are non-durable consumer goods.

For Example:- food, electricity, etc.

Note:- Non-durable goods are also called single-use consumer goods.

Note:- All consumption goods whether durable or non-durable come under the definition of Final Goods too.

Further Reading

S.NTopics
1.What is Macroeconomics
2.What are Goods in economics
3.What are Consumption Goods
4.What are capital goods
5.What are intermediate Goods
6.What is intermediate consumption
7.What are final Goods
8.What is Final Consumption
9.What is investment in economics
10. What is stock and flow
11.What are transfer payments
12.What is circular flow of income
13.What is Domestic Territory of a Country
14.What is normal resident of a country
15.Nominal GDP and Real GDP
S.NTopics
1.What is GDP Deflator
2.What are externalities in economics
3.Limitations of GDP as a measure of welfare
S.NTopics
1.Items to be included in National income
2.Items to be included in Domestic Income
S.NTopics
1.National Income and Related Aggregates, formula, Definition, process
2.Value added Method, formula, Definition, process
3.Income Method, formula, Definition, process
4.Expenditure Method, formula, Definition, process
5.
S.NTopics
1.150+ Numerical of Value Added Method
2.150+ Numerical of Income Method
3.150+ Numerical of Expenditure Method
4. 150+ Numerical of National Income and related aggregates
S.NTopics
1.250+ MCQs of National Income
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Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.

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