Goods and services

Question 1

Goods
What are goods?

Answer 1

Goods are products that you can touch.

Question 2

There are many ways to classify goods, name the 6

Answer 2

*Natural goods
*Manufactured goods
*Luxury goods
*Consumable goods
*Durable goods
*Capital goods

Question 3

What are natural goods?

Answer 3

Goods that are still in their natural state, such as apples, milk, fish, etc

Question 4

What are manufactured goods?

Answer 4

Goods that have been changed from their natural state by production, such as canned tuna, milkshake, bread, etc

Question 5

What are luxury goods?

Answer 5

Goods that we can easily live without. They are wants and not needs, such as chocolate, designer jeans, a swimming pool, etc

Question 6

What are consumable goods?

Answer 6

Also known as non-durable goods. These are goods that do not last for long as they are used up or will spoil easily, such as bread, milk, bunch of flowers, etc

Question 7

What are durable goods?

Answer 7

Goods that will last a long time, such as pots and pans, furniture, etc

Question 8

What are capital goods?

Answer 8

These are durable goods that we use to earn money, such as a minibus used for a taxi service, or a lawnmower used in a garden service business.

Question 9

Services
What are services? Give examples of services.

Answer 9

Services are things that other people do for us and for which we pay. They are things such as treatment by a doctor, or repairs to a television set, or being transported in a bus.

Question 10

Producers and consumers
All organisations that produce goods and services are called …

Answer 10

Producers

Question 11

They then sell these goods or services to who?

Answer 11

People who need or want them.

Question 12

People who buy or use goods and services are called?

Answer 12

Consumers

Question 13

This demand for goods and services by consumers is what ….

Answer 13

Drives the economy and creates jobs for producers.

Question 14

That is why it is just as important for the producer to ….

Answer 14

Produce the type and quality of goods and services that consumers want.

Question 15

The role of households as producer and consumer.
Households are ….

Answer 15

Families

Question 16

Households are responsible for much of the …

Answer 16

Consumption in a country by spending their income on goods and services.

Question 17

They are therefore …

Answer 17

Consumers

Question 18

They also have jobs which makes them …

Answer 18

Producers of services and producers of goods.

Question 19

Using goods and services efficiently and effectively.

Question 20

Explain efficient use of goods and services. Give an example.

Answer 20

Efficient use of goods and services means using them so that there is very little waste, eg, using the whole potato and not peeling it and throwing the peels away.

Question 21

Explain effective use of goods and services. Give an example.

Answer 21

Effective use of goods and services means that they are used in the best way possible, eg using a piece of plant to make furniture rather than using it to make a fire.

Question 22

How to recycle and re-use goods to satisfy needs and wants.
The material from which products are made will determine whether the goods can be …

Answer 22

re-used, recycled or disposed of.

Question 23

Of these 3 options, which one is the most environmentally friendly?

Answer 23

Re-using

Question 24

The more time we can re-use something, the more …

Answer 24

Value we get from it at no extra cost.

Question 25

Which one is the second best? And why?

Answer 25

Recycling. The materials are re-used, but there are processing costs, and more materials needed to turn it into a new product again.

Question 26

Which one is most wasteful?

Answer 26

Disposing of goods is the most wasteful and therefore the least effective option.