Business: Goods and Services Flashcards

Questions and Answers

What is the definition of services?

Goods that last long

Goods used to produce other goods and services

Tangible things which have the power to satisfy human wants

Intangible things that we can't see, feel, or touch (correct)

What are goods?

Tangible things which have the power to satisfy human wants

Define free goods.

Gifts of nature, available in abundance, and doesn't have a cost

What are economic goods?

Man-made goods which involves a cost of production Signup and view all the answers

What are consumer goods?

Products intended for direct consumption Signup and view all the answers

Define producer goods.

Goods used to produce other goods and services Signup and view all the answers

What are durable goods?

Goods that last long Signup and view all the answers

Define non-durable goods.

Goods that last for a short period of time Signup and view all the answers

What are merit goods?

Goods that the government thinks that the people should have, and if not provided by government, they would be underprovided by the private sector Signup and view all the answers

Define public goods.

Goods which are non-rivalry and non-excludable Signup and view all the answers

What are non-rivalry goods?

Consumption of goods by one individual doesn't reduce the amount available for others Signup and view all the answers

Define non-excludable goods.

None can be effectively excluded from using up that good Signup and view all the answers

Study Notes

Goods and Services Overview

Services: Intangible offerings that cannot be seen, felt, or touched.
Goods: Tangible items that fulfill human desires and needs.

Types of Goods

Free Goods: Natural resources available in abundance without cost.
Economic Goods: Man-made items that require production costs.

Consumer vs. Producer Goods

Consumer Goods: Produced specifically for direct consumption by end-users.
Producer Goods: Items utilized to create other goods and services.

Durability Classification

Durable Goods: Items designed for long-term use and longevity.
Non-Durable Goods: Products that are consumed quickly or have a short lifespan.

Government Involvement in Goods

Merit Goods: Goods deemed essential by the government, likely underprovided by the private sector without intervention.
Public Goods: Items characterized by non-rivalry (consumption by one does not diminish availability for others) and non-excludability (impossible to prevent anyone from using).

Key Concepts in Goods

Non-Rivalry Goods: Individual consumption does not affect others' ability to access the good.
Non-Excludable Goods: No one can be effectively prohibited from using or benefiting from these goods.

Description

This quiz focuses on key concepts related to goods and services in business. It includes definitions of terms such as services, goods, free goods, and economic goods. Perfect for students wanting to solidify their understanding of basic business terminology.