Goods and services is a common term used in economics that covers all things that are, have been or will being produced, sold or consumed. This includes all tangible goods, all non-tangible goods and of course services (these are never tangible).

Whats a tangible good?

A tangible good is any thing that is being produced, sold or consumed that has a phsyical presence, i.e., a good or service that has a physical presence (things you can touch), e.g., the computer you're working on this very minute, the clock on your wall or your car.

What about non-tangible goods?

These are goods that you cannot touch, i.e., do not have a phsyical presence, e.g., integrity in a business, good will, a good reputation with customers. Do not get non-tangible goods confused with services - they're totally different.

Services are all non-tangible, you cannot touch them! For example, have you ever tried touching a haircut? You can touch your hair after you get a haircut but your not actually touching the haircut, your touching cut hair. Other examples could be getting insurance or even getting your shoes shined at the mall.

Well after that, surely there must be other types of goods?

There's a few different categories that goods may be split into to.

  • Consumer or private goods (the most common type of good)
  • Capital goods (these goods produce consumer, private or even other capital goods)
  • Public goods (this is a good subsidised by the government - usually it's seen to be good for you, like milk)
  • Intermediate goods (this is a good that is a part of another good, e.g., the second hand on your watch, by itself it would be worthless, but with the rest of the watch theres a demand for it).

    For a full definition of good and services visit
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