Goods and Services — Flashcards

Answer

Goods are tangible in nature. They can be seen and touched, and they satisfy human wants. A chair, a book, and a television are common examples.

Answer

Services are non-tangible in nature. They can neither be seen nor touched. They satisfy human wants through acts such as treatment by a doctor, hair cutting by a hairdresser, or stitching by a tailor.

Answer

Goods are tangible, can be stored, and can be transferred from one place to another. Services are non-tangible, cannot be stored, and transfer of service is not possible. Goods are produced first and …

Answer

Goods can be stored because they are tangible objects. Services cannot be stored because they are acts performed at a particular time. For example, a chair can be kept for later use, but a doctor's ex…

Answer

Free goods are goods which possess utility but which are not scarce. They are available in abundance, and no price is paid for them. Sand in a desert is an example of a free good.

Answer

Economic goods are those goods, whether manmade or free gifts of nature, whose demand is more than supply. They command a price and can be bought in the market. Water, sand for construction, minerals,…

Answer

Sand in a desert is available in unlimited quantity and has no price there, so it is a free good. Water used in daily life is scarce in relation to demand, so it becomes an economic good and commands …

Answer

Free services are services that cannot be bought in the market and are rendered due to love, affection, or similar feelings. Services of parents for their children are an example.