Goods and services

Goods and services

In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax.

We satisfy our needs and wants by buying goods and services. Goods are items you can see and touch, such as a book, a pen, a folder etc. Services are provided for you by other people, such as; doctor, dentist, haircut and eating out a a restaurant.

The service-goods continuum

The dichotomy between physical goods and intangible services should not be given too much credence. These are not discrete categories. Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point. Most products fall between these two extremes. For example, a restaurant provides a physical good (prepared food), but also provides services in the form of ambiance, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods & m dash; like water utilities which actually deliver water — utilities are usually treated as services.

In business, people sometimes talk about the marketing of products and services. This is clearly tautology - services are products. Marketers must draw on the same set of principles and skills to market all products, whether they are apples, oranges or haircuts. Like economists, marketers too view goods and services as two ends of a continuum.

ee also

* Service (economics)
* List of countries by GDP sector composition

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • goods and services — ˌgoods and ˈservices noun [plural] ECONOMICS used to talk about everything produced or sold in an economy: • Consumer spending on goods and services rose 0.6% in September, after adjusting for inflation. * * * goods and services UK US noun… …   Financial and business terms

  • Goods and Services Tax (Hong Kong) — Goods and Services Tax (GST) was a proposed Value Added Tax in Hong Kong. Consultation over a period of nine months was launched on 2006 07 19 and stirred considerable controversy.It launched a fierce debate amongst local taxpayers, lawmakers,… …   Wikipedia

  • Goods and Services Tax (Singapore) — Goods and Services Tax (Abbreviation: GST; Chinese: 消费税) was introduced in Singapore on April 1, 1994 at 3%, but later increased to 4% on 1 January 2003 and 5% on 1 January 2004. It was raised again to 7% on 1 July 2007.Singapore’s GST is a broad …   Wikipedia

  • Goods and Services Tax (New Zealand) — Goods and Services Tax (GST) is a value added tax introduced in New Zealand on 1 October 1986 at 10%. It later increased to 12.5% on 1 July 1989 and was further increased to 15% on 1 October 2010. End users pay this tax on all liable goods and… …   Wikipedia

  • goods and services tax — ➔ tax1 * * * goods and services tax UK US noun [C or U] (ABBREVIATION GST) TAX, COMMERCE ► the name for a tax on goods and services in some countries such as Australia and India …   Financial and business terms

  • Goods and Services Tax (Canada) — The Canadian Goods and Services Tax (GST) (French: Taxe sur les produits et services, TPS) is a multi level value added tax introduced in Canada on January 1, 1991, by Prime Minister Brian Mulroney and finance minister Michael Wilson. The GST… …   Wikipedia

  • Goods and Services Tax — Die Goods and Services Tax (gebräuchliche Abkürzung: GST) ist eine der Mehrwertsteuer vergleichbare Steuer, die in verschiedenen englischsprachigen Ländern auf verkaufte Güter und erbrachte Dienstleistungen erhoben wird. Inhaltsverzeichnis 1… …   Deutsch Wikipedia

  • Goods and Services Tax (Australia) — The GST (Goods and Services Tax) is a value added tax of 10% on most goods and services transactions in Australia.It was introduced by the Howard Government on 1 July 2000, replacing the previous Federal wholesale sales tax system and designed to …   Wikipedia

  • Goods and Services Tax — A goods and services tax or value added tax is a tax on exchanges.By country: *Goods and Services Tax (Australia) *Goods and Services Tax (Canada) *Goods and Services Tax (New Zealand) *Goods and Services Tax (Singapore) *Goods and Services Tax… …   Wikipedia

  • Goods and Services Tax - GST — A Canadian value added tax levied on most goods and services sold for domestic consumption. The tax is levied in order to provide revenue for the federal government. The Goods and Services Tax is paid by consumers, but it is levied and remitted… …   Investment dictionary