Services People Do

In economics, a service is an action or work that someone does for someone else. Unlike a toy or a snack, you cannot hold a service in your hand. Instead, a service is something you experience. For example, when you go to the barber, you don't walk out holding a 'haircut' in a bag. The barber used their skills to do work for you. That work is a service! People pay for services just like they pay for toys because services help us do things we cannot do easily by ourselves.

Many people in our town provide services every day. We call them community helpers. A doctor provides a service by checking your heartbeat and helping you get well. A teacher provides a service by explaining new ideas and helping you practice math. Even a bus driver provides a service by moving you from one place to another. These people use their time and talents to make the community a better place for everyone.

It is important to know the difference between a good and a service. A good is a physical object you can touch and keep, like a $basketball$ or an $apple$. A service is an action. Sometimes, they work together! When you go to a restaurant, the $pizza$ is a good, but the $chef$ cooking it and the $waiter$ bringing it to your table are providing services. Most things we spend money on are either things we keep (goods) or help we receive (services).