What is the difference between a good and a service?

A good is defined as a tangible item that can be physically touched, possessed, and measured. Examples of goods include items like clothing, food, and electronics—products that can be bought and sold. On the other hand, a service refers to an intangible activity or benefit that one party offers to another, such as haircuts, legal advice, or transportation. Services cannot be physically owned or stored, and they often involve a time commitment or the expertise of the service provider.

This distinction is crucial in understanding business concepts, as it helps in identifying how different industries operate and how consumers interact with products and services. By recognizing that goods are tangible and services are intangible, individuals can better comprehend the nature of what is being exchanged in a transaction. This foundational knowledge is fundamental in various business practices and economic discussions.