Consumer Goods
What are consumer goods?
Consumer goods are products that are consumed or used by the customer and intended for the mass market.
Are consumer goods the same as final goods?
“Final goods” are the ultimate physical output of an economy. All other goods, called “intermediate goods,” are used as an inputs in the manufacture of another product.
Thus, consumer goods are a specific type of final good. Consumer goods are final goods that are intended for a very large group of consumers, the so-called “average” consumer. Many final goods, such as extremely expensive jewelry, are not consumer goods. However, all consumer goods are final goods.
How are consumer goods and Gross Domestic Product related?
Gross Domestic Product (GDP) is equal to the total expenditure on all final goods and services produced domestically during a set period. Since all consumer goods are final goods and consumer goods compromise a large portion of final goods, consumer goods are a key component of GDP.