Goods vs. Services: Examples and Real-World Applications

📚 Quick Study Guide

🔍 Goods: Tangible items that can be seen, touched, and owned. Think of things you can buy in a store. 📦 Examples of Goods: Food, clothing, electronics, cars. 🤝 Services: Intangible activities performed for someone else. You can't hold them, but you benefit from them. 👩‍⚕️ Examples of Services: Haircuts, medical check-ups, legal advice, education. ⚡ Key Difference: Goods are physical; services are actions or performances. ⏱️ Perishability: Services are often perishable (unused capacity cannot be stored). A vacant hotel room tonight cannot be sold tomorrow for tonight. 📊 Variability: Services can be more variable than goods due to the human element. Two haircuts from the same stylist might differ slightly.

Practice Quiz

1. Which of the following is an example of a good?
   1. A haircut
   2. A doctor's appointment
   3. A new laptop
   4. Financial advice
2. Which of the following is a characteristic of a service?
   1. Tangible
   2. Intangible
   3. Can be returned
   4. Always consistent
3. A car is an example of a:
   1. Service
   2. Good
   3. Both a good and a service
   4. Neither a good nor a service
4. Legal advice from a lawyer is an example of:
   1. A good
   2. A service
   3. A tangible product
   4. Inventory
5. Which of the following is MOSTLY a service-based industry?
   1. Agriculture
   2. Manufacturing
   3. Healthcare
   4. Retail
6. Which of the following differentiates goods from services?
   1. Goods are always cheaper
   2. Services are always more valuable
   3. Goods are tangible, and services are intangible
   4. Services are always provided online
7. A software subscription would MOSTLY be considered a:
   1. Tangible good
   2. Intangible good
   3. Service
   4. Physical product