briefly differentiate between goods and services
Answers
Goods are tangible, as in these have a physical presence and they can be touched, while services are intangible in nature. The purpose of both goods and services is to provide utility and satisfaction to the consumer.
Answer:
Goods and services are an essential part of an economy, and these two terms are used in most of the important economic discussions.
There are many products that a consumer purchases in order to fulfill their certain requirements. These products can be either in the form of goods or services.
Explanation:
GOODS
Goods are tangible, as in these have a physical presence and they can be touched, while services are intangible in nature.
The purpose of both goods and services is to provide utility and satisfaction to the consumer.
Goods can be classified as durable and non-durable based on their durability. Durable goods last for a long time while non-durable goods perish sooner than durable goods.
SERVICES
Services are the intangible and non physical part of the economy that cannot be touched. They are perishable in nature as they need to be provided at a moment when requested by the consumer.
Service lacks a physical identity and cannot be owned, it can only be utilised. For e.g, when having dinner at a restaurant you can avail the concierge services but you do not own the restaurant.
In other words, there is no transfer of ownership in services and unlike goods, services cannot be stored and utilised later. Also, services cannot be distinguished from the service provider.