Goods & Services
Aleah Cady
Goods and Services
What are goods and services?
Economically, goods and services supply the needs of people.
Goods are something that you can use or consume and are usually physical, while services are intangible, something that is done for you.
Consumer vs. Capital Goods
- Consumer goods are the "final product." purchased by consumers to directly satisfy a need or want. Examples would be foods, beverages, video games, CDs, sport goods, etc.
- Capital goods add to the asset of an enterprise. Examples would be machinery and equipment, power generators, office equipment, etc. (Things that you will use to make something else.)
Services
Examples of services would include:
- Getting a haircut
- Being taught a new language
- Getting a medical checkup
- Car repair
Going to the doctor.
You are receiving medical treatment, which is not an object.
Getting a haircut.
A haircut is not a good you can consume, but it is a service done by someone for you.
Firefighters.
Firefighters supply safety, which is not a good, but a necessity.