Goods and Services:

In economics, the term goods referes to meterial or physical things which can be seen or touched and used to satisfy human wants. Examinples include food items, cars, shoes, wristwatch, industrial equipment and machineries, etc.

Goods are classified in different ways. One classification is economic goods and non-economic goods. Economic goods are those goods whcih have prices and their production requires scarce resources having competing uses. On the other hand the term non- economic goods refers to things that are unlimited in supply and can be obtained free-without paying a price. Examples on non-economic goods are stream water, gutter sand, sunshine, air, bush trees, etc.

Economcs activities other than manufacturing or primary goods production are referred to as services. Examples are banking, shipping, legal, insurance, taurism, medical care, etc. But it is also common in economics to use the term goods to refer to both material goods and services which, in this case, is regarded as non-material goods.