Good: Difference between revisions
Pestergaines (talk | contribs) →Consumer and producer goods: Linked production goods |
Pestergaines (talk | contribs) rewrote the definition of Goods |
||
| Line 1: | Line 1: | ||
[[Action]] is realized by means to achieve certain ends. Means are necessarily always limited, i.e., [[Scarcity|scarce]] with regard to the services for which man wants to use them. The means to satisfy man’s wants are called '''goods'''.<ref name="Mises_Means">Ludwig von Mises. [http://mises.org/humanaction/chap4sec1.asp "Human Action"], Ends and Means, p.92.</ref><ref name="Rothbard_Means">Murray N. Rothbard. [http://mises.org/rothbard/mes/chap1a.asp#3._Further_Implications "Man, Economy and State], Further Implications: The Means, p.8.</ref> | |||
(''A good should not to be confused with the adjective "good", as used in a [[Wikipedia:moral|moral]] or [[Wikipedia:ethics|ethical]] sense.'') | |||
==Consumer and producer goods== | |||
Goods may be classified in either of two categories: (a) they can immediately and directly satisfy human wants, or (b) they may be transformed into directly serviceable goods only at some point in the future - i.e., they can satisfy human wants indirectly. The former are called ''consumption goods'' or ''consumers’ goods'' or ''goods of the first order''. The latter are called ''producers’ goods'' or ''factors of production'' or ''goods of a higher order''.<ref name="Goods">Ludwig von Mises. [http://mises.org/humanaction/chap4sec1.asp "1. Ends and Means"], ''Chapter IV. A First Analysis of the Category of Action'', [[Wikipedia:Human Action|Human Action]], referenced 2009-04-27.</ref><ref name="Rothbard_Means">Murray N. Rothbard. [http://mises.org/rothbard/mes/chap1a.asp#3._Further_Implications "Man, Economy and State], Further Implications: The Means, p.8.</ref> | |||
A producers' good may be, by the cooperation of complementary producers' goods, transformed into a ''product''. This product may be a consumers' good; it may be a producers' good which when combined with other producers' goods will finally bring about a consumers' good. | |||
<!-- | |||
It is possible to think of the producers' goods as arranged in orders according to their proximity to the consumers' good for whose production they can be used. Those producers' good which are nearest to the production of a consumers' good are ranged in the second order, and accordingly those which are used for the production of goods of the second order in the third order and so on. | |||
?Services? | |||
Throwing out Scarcity: | |||
==Scarcity== | ==Scarcity== | ||
Everything is [[Scarcity|scarce]], except for things that are not. | Everything is [[Scarcity|scarce]], except for things that are not. | ||
--> | |||
==Free Goods== | ==Free Goods== | ||
| Line 15: | Line 22: | ||
==Public Goods== | ==Public Goods== | ||
See the [[Wikipedia:Public good|public good theory]]... | |||
And [http://www.econlib.org/library/Enc/PublicGoods.html more] on it... | And [http://www.econlib.org/library/Enc/PublicGoods.html more] on it... | ||
Revision as of 10:49, 30 April 2009
Action is realized by means to achieve certain ends. Means are necessarily always limited, i.e., scarce with regard to the services for which man wants to use them. The means to satisfy man’s wants are called goods.[1][2]
(A good should not to be confused with the adjective "good", as used in a moral or ethical sense.)
Consumer and producer goods
Goods may be classified in either of two categories: (a) they can immediately and directly satisfy human wants, or (b) they may be transformed into directly serviceable goods only at some point in the future - i.e., they can satisfy human wants indirectly. The former are called consumption goods or consumers’ goods or goods of the first order. The latter are called producers’ goods or factors of production or goods of a higher order.[3][2]
A producers' good may be, by the cooperation of complementary producers' goods, transformed into a product. This product may be a consumers' good; it may be a producers' good which when combined with other producers' goods will finally bring about a consumers' good.
Free Goods
Economists often differentiated between free goods and economic goods. They called free goods those things which, being available in superfluous abundance, do not need to be economized. Such goods are, however, not the object of any action. They are general conditions of human welfare; they are parts of the natural environment in which man lives and acts. Only the economic goods are the substratum of action. They alone are dealt with in economics.
Public Goods
See the public good theory...
And more on it...
References
- ↑ Ludwig von Mises. "Human Action", Ends and Means, p.92.
- ↑ 2.0 2.1 Murray N. Rothbard. "Man, Economy and State, Further Implications: The Means, p.8.
- ↑ Ludwig von Mises. "1. Ends and Means", Chapter IV. A First Analysis of the Category of Action, Human Action, referenced 2009-04-27.