Meaning of Goods

What are Goods:

As goods, tangible or immaterial things are called that, from a legal point of view, are objects of law, in the same way that, from an economic perspective, they are scarce, limited and, consequently, have a value that can be defined in monetary terms. As such, the word goods comes from the Latin bene, which means 'good'.

For a good to be considered as an economic good, it must meet certain characteristics: have a certain demand or be considered useful or desirable by a considerable number of people; be scarce and limited, that is, have a demand that is higher than its supply, and, finally, be susceptible to being valued monetarily.

An economic good is, therefore, a product created for exchange in the market and, as such, it is the opposite of a free good or of unlimited supply, such as air.

In this sense, in Economics, goods can be classified according to their characteristics and the uses to which they are intended. Hence there are movable and immovable property, capital, intermediate and consumer goods; private, public and mixed goods, etc.

Property

As real estate, also called real estate, all those assets that cannot be moved from the place where they are are considered, such as lands, buildings, houses, roads, constructions, mines, etc., together with the ornaments or artifacts that they have incorporated.

Movable property

What characterizes movable property, compared to real estate, is its mobility, that is, it can be moved from one place to another. A car, a computer, a bed or a refrigerator can be considered, in this sense, personal property.

Consumer goods

Consumer goods are those directly destined to satisfy the needs of the consumer who demands and acquires it. Hence, contrary to the capital good or the intermediate good, the consumer good is not intended to produce more goods. Items that we can consider as consumer goods are food, clothing, footwear, etc.

Intermediate goods

As intermediate goods are designated those that are used during the production processes to be transformed either into capital goods, such as machinery or technology, or into consumer goods, such as food, clothing, furniture, etc.

Capital goods

Capital goods, also called production goods, are made up of all those equipment, machinery, tools, installations, etc., as well as other goods and services, which are necessary for the production of goods. In this sense, capital goods are those that both individuals and companies use for production products intended for consumption.

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