Final Goods

Final goods are those goods that do not require further processing and are ready to use. These goods are also called consumer goods and are manufactured for the purpose of direct use by the end consumer. In a nutshell, final goods are products that are manufactured by a company for consumption by the consumer in the coming time. These goods aim to satisfy the needs or wants of a consumer. Final goods are neither resold nor used for further transformation in production. 

Final goods consist of the following:

Goods that are purchased by the local households are meant for final consumption. For example, television, milk, ready-to-eat foods, medicines, etc. It also consists of the goods that are bought by the organizations for investment purposes or the formation of capital.

Final goods can be diversified into the following two broad categories:

• Buying habits
• Durability

On the basis of buying habits of a consumer, there are four types of goods:

1. Convenience Goods

Convenience goods are those goods that are available and regularly consumed by buyers. For example, milk, bread, pulses, etc.

2. Specialty Goods

Specialty goods are mostly consumed by the upper class of society, as they provide luxury and are expensive. These goods are not a necessity; instead, the purchase is made based on the basis of the user’s desires. Examples of such goods are antique cars, jewelry, etc.

3. Shopping Goods

These types of goods are purchased after thinking a lot about them on the consumer’s part.  They are durable and more expensive in comparison to convenience goods. For example refrigerators, televisions, laptops, etc.

4. Unsought Goods

These types of goods are easily available in the market but are rarely purchased by consumers. For example fire extinguishers, snow jackets, etc.

On the basis of the durability of goods, there are three types of goods:

1. Service

Services are intangible, as they cannot be physically touched, but they provide satisfaction to the buyers. They are variable and indivisible. For example, salon services, automobile repair services, etc.

2. Non-Durable

Non-durable goods are goods with small shelf life and are to be consumed as soon as possible. For example, milk, beverages, etc.

3. Durable Goods

Durable goods are goods with a longer shelf life than non-durable goods. For example, cars, equipment, etc.

Macroeconomics is a part of economics that focuses on how a general economy, the market, or different systems that operate on a large scale, behaves. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment.

“Macroeconomics is that part of economics which studies the overall averages and aggregates of the system”. – KE Boulding