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Learning the difference between physical items and actions people do for others.
Imagine you have $10 to spend at the town fair. You could buy a giant blue cotton candy, or you could pay for a 5-minute pony ride. Why is one something you can keep in your hand, while the other is just a fun memory?
Goods are physical things that people make or grow. The best way to remember a good is that you can touch it, hold it, or put it in a bag. When you go to a grocery store, almost everything you see on the shelves is a good.
Examples of goods include: - A crunchy red apple - A new pair of sneakers - A soccer ball - A comic book
Let's look at a toy shop to find the goods: 1. You walk into the store and see a shelf of board games. 2. You pick up a box; you can feel the weight of it. 3. You pay the cashier and take the box home. 4. Because you can touch the box and keep it, the board game is a good.
Quick Check
If you can put an item in a backpack and carry it home, is it a good or a service?
Answer
It is a good.
A service is different from a good because you can't hold it in your hand. A service is work or an action that someone does for you. You are paying for their time, their skills, or their tools.
When you get a haircut, you aren't buying the scissors; you are paying for the barber's skill in cutting your hair. When the haircut is over, you don't walk out with a physical object in a bag (except maybe your new look!).
Common services include: - A teacher giving a lesson - A doctor checking your health - A bus driver taking you to school - A librarian helping you find a book
Imagine your dog is messy and needs a bath. 1. You take your dog to the groomer. 2. The groomer uses their time and shampoo to wash and brush your dog. 3. You pay the groomer for their hard work. 4. You leave with a clean dog, but you didn't buy a 'thing' to keep—you paid for the service of cleaning.
Quick Check
Is a dentist cleaning your teeth a good or a service?
Answer
It is a service.
In the real world, businesses often provide both goods and services at the same time! Think about a pizza restaurant. The pizza itself is a good because you can eat it and touch it. However, if a driver brings that pizza to your front door, that delivery is a service.
Identify the goods and services in this story: 1. Sam goes to the bike shop and buys a shiny new helmet (Good). 2. Sam's old bike has a flat tire, so the mechanic fixes it for him (Service). 3. Sam also buys a water bottle for his bike frame (Good). 4. Sam pays for everything and rides away on his fixed bike with his new gear.
Which of these is a GOOD?
Which of these is a SERVICE?
A movie theater provides a service by showing you a movie.
Review Tomorrow
Tomorrow, look around your kitchen. Can you find three 'goods' and name one 'service' that helped those goods get to your house?
Practice Activity
Play 'Market Detective' next time you are at the store. Point out one person performing a service and one item that is a good.