Understanding Goods and Services

What are goods?

• Actions performed for others

• Tangible products that can be touched and used

• Services provided by professionals

• Digital transactions

Which of the following is an example of a service?

• Buying a car

• Watching a movie in a theater

• Purchasing a mobile phone

• Eating an apple

Goods are different from services because goods are:

• Intangible

• Produced and consumed at the same time

• Tangible and can be stored

• Always free

Which of these is NOT a characteristic of services?

• Cannot be touched

• Can be stored for later use

• Produced and consumed at the same time

• Requires human effort

What type of good is a smartphone?

• Durable good

• Non-durable good

• Perishable good

• Digital service

Which of the following is an example of a non-durable good?

• A refrigerator

• A bottle of milk

• A laptop

• A washing machine

Services are:

• Physical objects

• Stored for future use

• Actions or tasks performed for others

• Manufactured in factories

Which of the following is a public service?

• Grocery shopping

• Watching a TV show

• Firefighting

• Eating at a restaurant

Which of these businesses provides both goods and services?

• A bakery selling cakes and offering catering

• A hospital treating patients

• A furniture store

• A taxi service

Which of these is a key difference between goods and services?

• Goods are intangible, services are tangible

• Goods can be stored, services cannot

• Services do not require human effort

• Goods and services are always free