(a) Consumption goods : Consumption goods are those goods which are used by end-users to satisfy their needs and desires.These goods are consumed fully after purchase. Consumption goods are not used as raw material to produce new goods. Being final product, these are included in the calculation of national income. Food, clothes, vehicle, radio, television, books, etc. are the examples of consumption goods.

(b) Capital goods : Capital goods are those goods which are used to produce other goods and services. Those goods which are used in production process are called capital goods.

Capital goods are used as raw material to produce new goods. Machines, furniture, tools, equipment, buildings, dams, canal and plants for generation of electricity, etc. are examples of capital goods. Development of a country depends upon production of capital goods. Capital goods are used for production, so these are also known as producer goods.

(c) Intermediate goods : Goods which are within the boundary of production are called intermediate goods. In simple words, those goods which can be used for the production of other goods in the form of raw material are known as intermediate goods. Intermediate goods are normally in the form of semi-produced goods or raw material. Intermediate goods are processed through more than one process to convert them into final product. Cotton, thread are intermediate goods for readymade clothes.