what is the basis of classifying the services into consumer services or producer services ?
Answers
Answered by
4
Goods are material things wanted by human beings. They can be seen or touched. Services are non-material things. These cannot be seen or touched only their effects are felt. When we are hungry, we take food. When we fall sick, we take medicines. When we study, we use book, notebook, pen, paper etc. All these are examples of goods which satisfy some of our wants. All the things which satisfy human wants are good.
However, wants for haircut, washing of cloths, mending of shoes, stitching of cloths, studying in a school or a college etc. are not satisfied by goods. These are satisfied by the services performed by a barber, washer man, cobbler, tailor and teacher etc. So some of our wants are satisfied by goods and some by services. Hence, all the human wants can be satisfied by goods and services.
Classification of Goods and Services:
Goods and services are of many types. However, these can be classified into some broad groups.
These are discussed below:
(i) Free Goods and Economic goods:
The goods which have unlimited supply and are provided as free gift of nature. The goods which are not man-made and do not have to pay anything to get them. These goods are known as ‘Free Goods’. For example, air, sea, water, sunlight, sand in the desert etc. On the other hand, goods like vegetables, grains, minerals, fruits, fishes etc. which are neither man-made nor unlimited supply of nature are known as ‘Economic Goods’ All these goods are sold and purchased in the market only.
(ii) Free Services and Economic Services:
Services which cannot be bought in the market and which are only rendered out of love, affection etc. are known as ‘Free Services’. For example, all services given by the parents to their children are free services. However, all the services that can be bought in the market are ‘Economic Services’. Services rendered by doctors, teachers, lawyers, barbers, cobblers etc. are the example of economic services.
However, wants for haircut, washing of cloths, mending of shoes, stitching of cloths, studying in a school or a college etc. are not satisfied by goods. These are satisfied by the services performed by a barber, washer man, cobbler, tailor and teacher etc. So some of our wants are satisfied by goods and some by services. Hence, all the human wants can be satisfied by goods and services.
Classification of Goods and Services:
Goods and services are of many types. However, these can be classified into some broad groups.
These are discussed below:
(i) Free Goods and Economic goods:
The goods which have unlimited supply and are provided as free gift of nature. The goods which are not man-made and do not have to pay anything to get them. These goods are known as ‘Free Goods’. For example, air, sea, water, sunlight, sand in the desert etc. On the other hand, goods like vegetables, grains, minerals, fruits, fishes etc. which are neither man-made nor unlimited supply of nature are known as ‘Economic Goods’ All these goods are sold and purchased in the market only.
(ii) Free Services and Economic Services:
Services which cannot be bought in the market and which are only rendered out of love, affection etc. are known as ‘Free Services’. For example, all services given by the parents to their children are free services. However, all the services that can be bought in the market are ‘Economic Services’. Services rendered by doctors, teachers, lawyers, barbers, cobblers etc. are the example of economic services.
Similar questions