Producer Goods and Producer Services

(I) Producer Goods:-These goods which are used to produce more goods and services are called producer goods. Machines, tools, building, raw material etc. are all producer goods. These goods are required by the producers for producing more goods.Furthermore, producer goods are used not only to produce more goods but also to produce more services. For example, an X-ray machine in a hospital or a stethoscope with a doctor is a producer goods as this helps in rendering medical services. Thus producer goods are those goods which are used to produce goods and services.Producer goods are also classified into single use producer goods and durable use producer goods. Single use producer goods are those goods which are used up in production in a single act. For example, the raw material is single use producer goods. These goods lose their identity the moment they are used in production. Durable use producer goods are those goods which can be used in production again and again like machines, tools, vehicles, afctory building etc.(II) Producer Services:-The production units not only require goods but also services. For exapmle, services like that of banking, transport, insurance, advertising, etc. are needed by production units. All such services help in production goods and services. However, producer services are also only single use services. In fact, as all services whether they are consumer services or producer services services are produced and consumed simultaneously, these can only be single use.