Consumption Goods 

Consumption goods refer to those goods which satisfy the wants of the consumer directly. Example- Bread, Butter ...

Consumer Goods can be further sub-divided into :- 

  1. Durable Goods- Durable goods are those goods which we can use multiple times and their time period is also very long . Examples- T.V. , Fridge , AC etc. , 
  2. Semi-Durable Goods - Semi durable goods are those goods which can be used for limited times. Examples- Clothes, Shoes , Bags etc. , 
  3. Non- Durable Goods- Non durable goods are those goods which are used for single time only . Examples- Milk , Bread , Food grains , Paper . 
  4. Services - Services refer to non-material goods, which directly satisfy the human wants. They are intangible(cannot be touched). 
Capital Goods 

Capital goods refer to those final goods which help in the production process and have expected lifetime of several years. 

  • They need repairs or replacement as they depreciate over period of time. 
  • They have derived demand 
  • Capital goods are durable used consumer good for household. 
"All Producer Goods are not capital goods but all capital goods are producer goods" 

Producer Goods refer to the goods that are produced by a producer . Producer goods are of two types i.e., Single-use producer goods and Capital goods. Single-use producer goods are raw materials -coals, woods etc., but capital goods have several years of lifetime like machinery , plants etc. Hence it is true to say that all capital goods are producer goods but all producer goods not capital goods. 

Difference between Consumption Goods and Capital Goods :- 

1. Satisfaction of human wants - Consumption goods directly satisfy human wants and hence they have direct demand whereas Capital goods indirectly satisfy human wants and hence they have indirect demand. 

2. Production Capacity - Capital goods do not promote production capacity whereas Capital goods help in raising production capacity. 

3. Expected Life- Most of the consumption goods(expect durable goods) have limited expected life whereas Capital goods generally have an expected life of more than one year.  

Stock and Flow 

Stock : Stock variables are defined as any quantity , which is measured at a particular point of time, e.g., number of machines in a plant , amount in the bank account on a specific date, population of India on 24th of July 2014. 

Flow : Flow variables are defined any quantity which is measured over a period of time. Flows are changes in stock which can be measured over specific time period. Example- Population of India during 2014. 

Difference between Stock and Flow 

1 Meaning - Stock variables refers to that variable , which is measured at a particular point of time. whereas Flow variables refers to that variables which is measured over a period of time . 

2. Time - Stock does not have a time dimension but Flow does have a time dimension as its magnitude can be measured over a period of time. 

3. Nature of Concept - Stock is a static concept ( as it does not change on a specific date) while Flow is a dynamic concept ( as it do change over a period of time) . 

Examples - Total number of Hyundai Cars in Delhi vs Hyundai Cars manufactured during January 2019. Money Supply Vs Expenditure or transaction of money. National wealth vs National Income. Quantity of wheat stored vs Quantity of wheat produced.