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Classification of goods depend on the:
consumption of goods
production of goods
first-use of goods
end-use of goods
- Consumption of goods: This refers to how goods are ultimately used by consumers. Goods like food and clothing are consumed directly, indicating consumption's impact but not classification criteria.
- Production of goods: Focuses on how goods are made. While important, it doesn't directly categorize goods.
- First-use of goods: Indicates how goods are initially utilized. Though descriptive, it doesn't align with classification needs.
- End-use of goods: This determines how goods are ultimately used in the economy, like consumer goods or capital goods. Therefore, the classification of goods is based on their end-use.
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