Street lights are an example of a public good. Image credit source.co.zw
ZIMSEC O Level Business Studies Notes: Types of Goods
Goods are tangible products that are sold by businesses to customers and other businesses.
Goods can be classified in various ways for example there are:
Public goods– is a good that is non-rivalrous and non-excludable e.g. defense and street lights.
Private goods-the opposite of public goods.
Free goods– a good that has no economic value and freely occurring e.g. water in rural areas. Free goods have zero opportunity cost.
Snob Good/Goods of Snob appeal-goods whose demand increases when their price increases for example jewelry and high end fashion.
Complementary goods-these are goods that are used together for example tea and bread, DVD players and CDs, Cars and Fuel etc.
Substitute goods-goods that can be used in place of one another e.g. tea and coffee, margarine and butter, Pepsi and Coca Cola.
The Public and Private sector
Public Sector-Is that part of the economy that is made of businesses and entities that are owned, controlled and managed by the national and local government. Their main aim is to provide a service to the community at large rather than make profit. Examples include public corporation like GMB and ZESA.
Private Sector-is that part of the economy that is made up of businesses and entities that are owned controlled and managed by private individuals. Their main aim is to make a profit examples include OK and TM.