Meaning of Goods and Services

 Meaning of Goods and Services

Human wants are the beginning point of all economic activities. People have wants, which they must satisfy. There are two things with which we can satisfy these wants: goods and services.

Goods

Goods are all those tangible things or commodities that are used to satisfy human wants. In other words, all commodities having utility are called goods. Utility means the capacity of a commodity to satisfy human wants. For example, food, clothes, car, motorbike, buildings, etc. are goods. The features of goods are as follows:

• Goods are transferable, i.e. the ownership of goods may be changed, whenever required. 
• The change in the ownership requires that goods must be capable of being purchased and sold. 
• Goods may be exchanged for goods or sold for money.
• Goods are material and visible. It means that goods must have their existence. 
• They should have a certain form, shape, and size. 
• Goods are storable.

Services

Services are the human works, which satisfy human wants. Services are intangible, For example, doctor's work, lawyer's work, teacher's work, performing music and dance program by artists, etc. are examples of services. The features of services are as follows:

• Services do not have any physical existence.
• Services do not have any physical structure, i.e. form, size, and shape. They can neither be seen nor touched. Services can simply be felt.
• Services are consumed on the spot.
• They cannot be stored for future consumption.