As these preferred woods have become rarer and more expensive today, most furniture is made with ash, pine, gum, and poplar. Pine, fir, and other inexpensive woods are used for hidden parts. The rare woods are used only for very good furniture.
Being able to identify the type of wood used for your furniture can help you determine its real value. Wood identification can sometimes be the deciding factor when you aren't sure if a piece is worth refinishing or if it should be thrown away.
The woods that are fashioned into furniture fall into three categories:
1. Hardwoods
2. Softwoods
3. Composites
The term 'hardwood' or 'softwood' is misleading. Hardwoods aren't necessarily harder, denser material. For example, balsa wood is one of the lightest, least dense woods there is, and it's considered a hardwood. Technically, lumber is classified based on how the tree reproduces. As a general rule, though, softwood trees are evergreen year round while the hardwoods create the gorgeous autumn foliage that we all love so much.

Hardwoods are considered the highest quality and are the most expensive. Their natural colours vary from the darkest woods to the lightest ones and can be stained or painted for even more variety. Hardwood furniture is least likely to warp or bend.
Softwoods are less expensive than hardwoods, but they require extra care. Because they are less durable, it's much easier to scratch or dent softwood furniture. In addition, they often don't have the beautiful grains of a hardwood, and therefore don't tarnish as beautifully.

Composites are the cheapest form of wood and are literally manufactured, rather than grown. Three types of Composites are Plywood, Particle board, Hardboard and MDF.
1. Plywood: multiple layers of thin wooden sheets are glued together and pressed. Plywood is strong and resists swelling, shrinking and warping. There is some furniture made directly from plywood, but generally it is only used as a support when integrated into furniture.
2. Particle board: sawdust and small wood chips are mixed with glue or resin which is then shaped and pressure treated. When used for inexpensive furniture, particle board is usually covered with laminate or veneer. This is necessary because particle board splits easily and the laminate prevents splitting.
3. Hardboard: is made like particle board but it's placed under higher pressure so it's stronger.
4. MDF or Medium Density Fiberboard: wood particles are bonded with resin and compressed. It is harder than particle board or hardboard, and can be cut like plywood although it isn't as strong as plywood. Some MDF is covered with melamine which is a durable plastic in a variety of colours. The exposed edges of MDF are rough and need covering with a decorative material.

Technically, furniture made from all of these wood products is "real" wood furniture, even the composites. Prices and quality range from the hardwoods down to the composites. The higher you go up the range, the more you can expect to pay for your wood furniture. The good part is that with proper care hardwood furniture will last for decades or even generations. If you can afford it, always choose hardwood furniture.
http://tlc.howstuffworks.com/home/guide-to-furniture-woods-ga.htm
http://ezinearticles.com/?3-Kinds-Of-Wood-Used-In-Real-Wood-Furniture&id=61650
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