What are Economic Goods?
- Economic goods provide utilities and thus have demand. They are scarce and thus have a limited supply.
- Economic goods have a price that is required to obtain them.
Consumer Goods
- Consumer goods are basic products such as materials, whereas investment goods are machinery that processes consumer goods.
- For example lumber is a consumer good while a machine that processes wood into paper is an investment good.
Investment/Capital Goods
- Investment or Capital goods are usually machines and infrastructure.
- They support the production of consumer goods.
Free Goods
- Free goods are goods that are very abundant and have very little demand (in comparison to the amount of the resource) and thus are practically free.
- Examples of free goods are air, sunlight or salt water.