1. Goods and services

As an introduction to the language of economics, you will want to meet goods and services. Goods and services are the things that satisfy human wants. They make up “everything” that no one is able to have. Goods are thing that may be seen or felt. Services on the other hand, may not be seen or felt. Both goods and services have value because they satisfy human wants.

A ball-point pen, a pair of scissors, and a bus are all things of value that can be seen and touched. They are goods.

The care of the doctor when you are sick, a haircut, and the ride on a bus are all things of value. But they cannot be seen or touched. They are services. True, the doctor may use his pen to write a prescription, the barber will use scissors to give you a haircut, and the bus will provide the ride. But the thing you are buying in each of these cases is the service, not the good.