Goods

A thing which satisfies human want is called a good. Human wants can be satisfied with the help of goods and services. In economics goods may be physical or material goods like chair, table, car etc. or it may be services of a doctor or professor. Services or non-material goods like the services of a doctor or professor. Service means an act performed by one person for the benefit of another. Thus the characteristic of a good or service is to satisfy a human want.

Classification of Goods

Free goods and Economic goods

Free goods:

Free goods refer to those goods which are available in plenty in relation to demand. Therefore we do not pay a price to own them. Sand in the desert, air in the sea beach, sunshine etc. are examples of free goods. They are free gifts of nature and not the product of human labour.

Economic goods:

Economic goods are those goods which are limited in supply in relation to demand. We have to pay a price to own them. These goods are not the free gift of nature but are the result of human effort. Radio, car, book, house etc. are examples of economic goods. Economic goods are otherwise known as wealth as they satisfy all the attributes of wealth like utility, scarcity and exchangeability.