Goods

It is defined as anything that satisfies human wants or needs.

Some items like which cause dissatisfaction or definite harm to the consumer. Example liquor
are called economic bads
Classification of goods
1) Based on Supply:

a) Economic goods:
They are scarce
Mostly man made
Have price and available only after payment

b) Free goods:
Free goods are those goods that exist in plenty that can be used as much as we like
They are gifts of nature and used without payment Example: Air, sunshine etc.

2) Based on Consumption:

a) Consumer goods:
They are used by consumer directly to satisfy the wants Example: food, clothing, etc.
These goods are also termed as goods of first order.

b) Producer goods:
Producer goods are these goods which help us to produce other goods
It give satisfaction indirectly
e.g. machinery, tools etc. They are also termed goods of the second order.

3) Based on durability

a) Mono Period Goods: are those goods which can be used only once in the production and
consumption process. Example: Seeds, Fertilizers, food etc.

b) Poly Period Goods: Are those which can be used repeatedly during the production and
consumption process over several periods. Example: refrigerator machinery, implements etc.,

4) According to transferability
Material good: These are tangible in nature. Gold, land
Non Material good: These are intangible in nature. Non material goods are services.

5) According to the ownership
a) Public goods:
Owned and maintained by government
Open for the use under proper rules and regulation
E.g. roads, bridges


b) Private goods
Are those which are not freely accessible to general public for use.
E.g house, private land

Utility

Utility means the power of a commodity to satisfy a human want.
This concept was given by W.S Jevons of England, Karl Menger of Australia and L.Walras
of France. Later define by Alfred Marshall

The feature of the utility

1. Utility is subjective ( Relative )

It varies from man to man: High yielding seed variety gives utility to farmer but for cloth
merchant it has no utility.

It varies time to time: e.g. cooler has utility in summer but don not utility in the winter.
(Labor)

2. Utility is not essentially useful
For example the liquor is not useful, but it satisfy the want of the addict thus have utility for him.

3. Utility is ethically neutral.
Use of the liquor is not good from moral point of view but as this intoxicant satisfies the human
need thus it has utilities.

4. Utility is different from the pleasure.
A medicine is bitter, yet it has utility, though it is not pleasure.

5. Utilities varies with purpose

For examples coconut oil is used as cooking oil or hair oil or as lubricants

Type of utilities
Form utilities: Created due to processing, eg. Rice gets more price than paddy
Place utilities: Created due to transportation. Apple of jumla has more utilities in Terai
Time utilities: Created due to the storage: Offseason availability of commodity. Potato
Possession utilities: Created due to the exchange: Agriculture land sold to real state increase
utilities
Cardinal and ordinal utility

Cardinal Utility:- It means that utility can be measured with the utils but it converted to the price.

Ordinal Utility:- It means that utility can be ranked according to the preferences of the individuals