GA Notes:"Different types of Economic goods" For Railway & SSC Exams 2018

December 12, 2018 Share Like Labels: ssc

Dear Students,

General Awareness is an important section that can help you grab the maximum marks in a competitive exam in the minimum time. You need not perform complex calculation to settle for the correct option so, it's the best to be prepared with the facts and figures in advance so as to score to the maximum in this section. For Railway Group-D Exam 2018, important awards, current affairs, history, geography, general science, economy and Static GK is occupying the major part. To let you have an information about all important sections of GA, this post is to provide you with one of the important topic related to Indian Polity on Chief Minister of State. Grab the below given important points related to this particular topic and score well in the examination.

Different types of Economic goods

Normal good:

In economics, a normal good is any good for which demand increases when income increases, i.e. with a positive income elasticity of demand.
In general, Nike or Adidas shoes would be a normal good. As you make more money, you are likely to move from off-brand shoes to nicer quality ones.

Inferior good:

In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases), unlike normal goods, for which the opposite is observed.
Inferior goods do not necessarily mean they are inferior in quality to normal goods; it simply means people tend to buy more of them when their income is lower and less when their income is higher.

Complementary good:

In economics, a complementary goods or complement is a goods with a negative cross elasticity of demand, in contrast to a substitute goods.
This means a good's demand is increased when the price of another goods is decreased. Conversely, the demand for a goods is decreased when the price of another goods is increased.

Substitute good:

A substitute good, in contrast to a complementary good, is a good with a positive cross elasticity of demand.
This means a good's demand is increased when the price of another good is increased; both in the same direction. Formally, X and Y are substitutes if, when the price of X rises, the demand for Y rises.
A substitute good, in contrast to a complementary good, is a good with a positive cross elasticity of demand.

Giffen Good:

A Giffen good is a good for which demand increases as the price increases and falls when the price decreases. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand which states that quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.
A Giffen good is typically an inferior product that does not have easily available substitutes, as a result of which the income effect dominates the substitution effect.

Veblen Good:

A veblen good is a good for which demand increases as the price increases, because of its exclusive nature and appeal as a status symbol.
A Veblen good has an upward-sloping demand curve, which runs counter to the typical downward-sloping curve.
However, a Veblen good is generally a high-quality, coveted product, in contrast to a Giffen good, which is an inferior product that does not have easily available substitutes.

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