Ok, the question is what do you mean by consumption goods. The definition of consumption good I have discussed here is relevant to the national income chapter of the class 12 CBSE board.
Hello, My name is Anurag Pathak (your commerce teacher), and welcome to Commerce School (Exclusive learning platform for Commerce Students).
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 is final goods and whatnot, you must have an understanding of what are consumption goods, capital goods, and intermediate goods.
I have explained all three topics in detail in below blog post.
Lets first understand what is goods
Definition of Goods in National Income Macroeconomics Class 12 CBSE Board
Good is defined as any object, natural or man-made, or service rendered, that could command a price in the market.
- good include both physical product and services
- it command a price in the market
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 satisfaction of wants are called consumption goods.
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 him.
- purchase of food, clothes, tv, refrigerator, Vehicle by households (families).
- 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 purchases is termed as consumption goods.
Durable Consumer Goods
Goods that yield services overtime 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 comes under the definition of Final Goods too.