Goods and services — Economics, 7–10 years
Some things are made to be used, while other economic activities help us directly. Learning the difference makes everyday buying and selling easier to understand.
Two ways to help
A good is something you can usually touch and keep, such as bread, a pencil or a bicycle. A service is an action done for you, such as a haircut, a bus journey or help from a mechanic. Both can meet a need.
Why make the difference?
People need many kinds of help, but the work behind them is not all the same. A baker makes bread that can be taken away, while a driver provides a journey that happens as you travel. This difference helps businesses decide what to make, who to hire and how to charge.
A market stall
Mia sells three jars of jam for €4 each, so the goods bring in 3 × €4 = €12. Her aunt spends one hour helping customers and is paid €6 for that service. The stall therefore sells goods worth €12 and one service worth €6.
The reasonable mix-up
It is easy to think that anything bought in a shop is a good, because many services are paid for at a counter too. But a cinema ticket mainly pays for the experience of watching a film, not for a thing you take home. Look at what is being provided, not only where you pay.
In everyday life
When a family plans a day, it may buy goods such as food and also pay for services such as a train ride or a swimming lesson. Shops, hospitals, repairers and cafés all combine goods, services or both. Noticing the difference helps describe what each place does.
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