Explain the major difference between goods and services.
Give 2 examples of each.
goods
1. apples
2. oranges
services
1. valet parking
2. housekeeping
think about it
The major difference between goods and services lies in their nature and tangibility. Goods refer to physical or tangible items that can be seen, touched, and stored, while services are intangible and involve a task or an act performed by someone for another person or entity.
Here are two examples of goods:
1. Apples: Apples are tangible items that are grown on apple trees. They can be purchased, stored, and consumed.
2. Oranges: Oranges, like apples, are tangible fruits that can be bought, stored, and consumed.
And here are two examples of services:
1. Valet parking: Valet parking is an example of a service, where a designated person parks and retrieves your vehicle for you. This service does not involve a physical item but rather an act performed by another person.
2. Housekeeping: Housekeeping is another example of a service, where individuals or companies are hired to provide cleaning and maintenance services for homes or commercial properties. Again, this service involves an action or task performed by someone rather than a physical item.
When distinguishing between goods and services, it's important to consider whether it involves a physical item that you can hold or a task or act that is performed by someone else.