What are Goods and Services?
Goods and services are the output of an economic system. Goods are tangible items sold to customers, while services are tasks performed for the benefit of the recipients. Businesses also receive goods and services, not just consumers. When combined, the production, distribution, and consumption of goods and services are at the core of all economic activity.
Examples of Goods and Services
Examples of goods are automobiles, appliances, and clothing. Examples of services are legal advice, house cleaning, and consulting services. The output of a business can lie somewhere between these two concepts. For example, a landscaping company could sell a homeowner a tree (goods) and also mow the lawn (a service).
