All the economies of the world are governed under a feedback in the production of companies, and today I come to talk about this, we can see how companies are responsible for producing any kind of consumer goods, with the sale of these goods pay wages that allows the personal income of their employees or workers, and at the same time of their family group, these families spend part of that money to purchase consumer goods they need or like.

This process is what we know as production circuit, since part of the money they pay to their employees returns to their finances to continue with their production, among the economic goods we have, consumer goods and services, these are intended to meet the needs of consumers, these goods and services are also known as final goods and services.

We also have those intermediate economic goods such as production goods and services, these, as their name suggests, are used by companies or industries for the production of consumer goods, in any production process at the end we will get consumer goods, this is the main purpose of any production, to satisfy all kinds of human needs.

All the economic goods mentioned above can be perishable, or what is the same as single-use goods, since they disappear when they are consumed. Non-perishables are durable and can be handled several times without being easily destroyed, such as housing, household appliances and many others.

In terms of importance in their use, we have the first order, which are for direct consumption, e.g., bread. Second-order goods are those transformed into consumer or first-order goods, e.g., corn, wheat and many others. And the third order goods are considered to be those that make possible the transformation of the second order goods into consumer goods, such as, for example, the oven, mill, and many others.

We relate to all of them and they are part of the family economy, and of the finances of the companies that produce all kinds of goods and services of any kind.

Recommended Bibliographic Reference

[1] DEFINITION OF ECONOMIC ASSETS