L3 - Goods and services Flashcards
differentiate between goods and services
Goods
1. Goods are tangible in nature i.e. they can be seen and touched.
2. There is a time gap between production and consumption of goods as they are produced first and consumed later.
3. They can be stored and utilized when required.
4. They can be transferred from one place to another.
Services
1. Services are non-tangible in nature i.e. they can neither be seen nor be touched.
2. There is no time gap between the production and consumption of services. That is why they are produced and consumed simultaneously.
3. Services cannot be stored.
4. Transfer of service is not possible.
- Human wants are satisfied by consuming.
(a) Goods
(b) Services
(c) Both goods and services
(d) None of the above
c) both goods and services
- Out of the following, which are the characteristics of a good.
(a) Goods can be seen or touched
(b) Goods cannot be transferred
(c) There is no time gap between the production and consumption of goods
a) goods can be seen or touched
what are free goods?
Free goods are free gifts of nature. They are available in abundance i.e. in unlimited quantity and the supply is much more than the demand. You don’t have to pay anything to get them. That is why they are called free goods. In short we can define free goods as goods which posses utility but which are not scarce.
Ex - Air, sea water
What are Economic goods?
Economic goods are those goods (manmade or free gifts of nature) whose demand is more than supply. They command a price and they can be bought in the market.
Ex - toothpaste, soap, shaving cream, machines, buses, sand for construction and different minerals in different forms.
What are free services?
Free services are those, which cannot be bought in the market and which are rendered due to love, affection etc. For example services of parents for their children.
What are economic services?
All those services, which can be bought in the market, are economic services such as services of doctors, engineers etc.
What are consumer goods?
Consumer goods are those goods, which satisfy the wants of consumers directly. They are goods, which are used for consumption. For example bread, fruits, milk, clothes etc.
What are producer goods?
Producer goods are those goods, which satisfy the want of consumers indirectly.As they help in producing other goods, they are known as producer goods. For example machinery, tools, raw materials, seeds, manure and tractor etc
What are intermediate goods?
Raw materials, power, fuels etc. used by the producers for further production of final goods and services are also called intermediate goods. Example : Wheat flour is an intermediate good in the production of bread in the bakery.
What are consumer services?
When the consumers or the households directly use services, they are known as consumer services. For example services of a tailor stitching your shirt or services of a doctor giving you the treatment or services of a plumber repairing your leaking tap, etc.
What are producer services?
Producer services are used to produce other goods and services, which are in turn demanded by the consumers. In other words producer services satisfy the human wants indirectly. For example a tailor stitches a shirt for a readymade garment shop, an electrician repairs fault in the electric supply in a production unit or even a truck- transporting raw material to a factory.
What are single use goods?
Single use goods are those goods, which can be used only once. They are finished only in one use. For example bread, butter, egg, milk etc are the single use consumer goods as they are consumed immediately and once for all. Similarly single use producer goods are exhausted in one production process. For example coal, raw material, seeds, manure etc. To elaborate it further let us take the example of production of sugar. Here the raw material is sugarcane, which is used only once.
What are durable use goods?
Durable use goods are those goods, which can be used again and again for a long period of time. There are durable use consumer goods as well as durable use producer goods. Durable use consumer goods are cloth, furniture, television, scooter etc. that can be used by consumer again and again. Durable use producer goods are used in production againandagainforexample, machines,tools,tractorsandimplmentsetc.thisdoesnot mean that repeated use of these goods does not make any difference to them. In fact the value of these goods gets depreciated after continuous use.
What are Private goods?
All goods that are privately owned and are exclusively enjoyed by individuals are called private goods. For example all the goods owned by you are private goods. This includes your watch, pen, scooter, books, table, chair, bed, clothes etc. If you own a factory then its building, machinery; tools etc are your private goods.
