1. What are the three basic categories of consumer goods? Briefly explain each and clearly differentiate among them

There are three main types of consumer goods: durable goods, nondurable goods, and services.

Durable goods are consumer goods that have a long-life span (e.g. 3+ years) and are used over time. Examples include bicycles and refrigerators. Nondurable goods are consumed in less than three years and have short lifespans. Examples of nondurable goods include food and drinks. Services include auto repairs and haircuts.

Consumer goods are also called finals good, or end product, because they are the ultimate output of a productive process that occurs over time.