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Public goods and type of goods, Slides of Economics

it is a powerpoint presentation on public goods

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2022/2023

Uploaded on 03/05/2023

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PUBLIC GOODS
&OTHER GOODS ….
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PUBLIC GOODS

&OTHER GOODS

….

What are Public goods?

  • (^) Public goods are materials, products or services that anyone in a given society can access. Government agencies typically provide and distribute public goods.
  • (^) Economists categorize a good as a public good if it is both non-excludable and non-rivalrous. Non-excludable means all individuals and groups of people within that society have access to the items or services, while non- rivalrous refers to how the use of the item or service does not lead to a shortage of that good for others.

OTHER GOODS

CAPITAL GOODS

  • (^) Capital goods are physical assets that a company uses in the process to manufacture products and services that consumers will later use.
  • (^) Capital goods are also produced for the service sector, including hair clippers used by hairstylists and coffee machines for coffee shops.

Intermediate goods

  • (^) Intermediate goods are products that are used in the production process to make other goods, which are ultimately sold to consumers.
  • (^) When calculating GDP, economists use the value-added approach with intermediate goods to guarantee that they are not counted twice—once when purchased, and once when the final good is sold.

Examples of Intermediate goods

  • (^) A business could incorporate a car component a car component into a vehicle, which would be an intermediate goods or sell the car components to the consumer as a spare part which would be a final goods.
  • (^) Food ingredients
  • (^) Construction material

Examples of FMCG(s)

  • (^) Food and drink products
  • (^) Cleaning products
  • (^) Toothpaste, etc.

Luxury goods

  • (^) The private goods that are more expensive than normal goods.
  • (^) When a consumer income rises they tend to spend a higher percentage of their income on a luxury good.
  • (^) When their income facts they tend to purchase fewer luxury goods. Demand of luxury goods is more volatile than normal goods.

Inferior goods

  • (^) They are opposite to luxury, inferior goods are private goods that are cheaper than normal goods.
  • (^) When a consumer’s income fall, they often buys more inferior goods.
  • (^) Many companies manufactures various grades of goods to target different consumers segments.
  • (^) Understanding the differences in consumer behaviour across segments can help you to create more effetive marketing strategy.

Example of inferior goods

  • (^) Canned vegetables
  • (^) Instant coffee or generic brands, etc.