Explain the end-use classification of goods.

1.	Explain the end-use classification of goods.
Answer» Goods and services produced by the producing units are consumed by different categories of consumers. These include households, enterprises and general government. According to enduse, goods and services are classified into the following broad categories: (i) Consumer goods: Consumer goods may be durable, non-durable, or perishable. (ii) Intermediate goods: When the goods and services are consumed for further production they are called intermediate goods. (iii) Capital goods: Capital goods are defined as all goods produced for use in future productive processes. These include both durable and perishable goods. The end-use classification of goods and services clearly explain that a commodity which is a consumer good for one consumer may become intermediate good for another and capital good for the third category.

Answer»

Goods and services produced by the producing units are consumed by different categories of consumers. These include households, enterprises and general government.

According to enduse, goods and services are classified into the following broad categories:

(i) Consumer goods: Consumer goods may be durable, non-durable, or perishable.

(ii) Intermediate goods: When the goods and services are consumed for further production they are called intermediate goods.

(iii) Capital goods: Capital goods are defined as all goods produced for use in future productive processes. These include both durable and perishable goods.

The end-use classification of goods and services clearly explain that a commodity which is a consumer good for one consumer may become intermediate good for another and capital good for the third category.

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