Economics - Goods, Services and Consumers, Producers

Goods are things people make. Goods can be touched or held. Goods are products like cars, paper or candy bars.

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​Goods

Services are things people do. Services cannot be touched or held. Examples of services are teaching, giving a haircut or repairing a car. Unlike goods, a service is used at the moment it is produced.

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​Services

Producers make and sell goods and services.

Consumers buy and use goods and services.

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​Producer and Consumers

​Consumers and producers are interdependent.

That means they depend on each other. Consumers depend on producers to make goods and provide services. For example, we depend on farmers to grow fruits and vegetables to eat. Producers depend on consumers to buy goods and services. For example, farmers depend on consumers to buy their fruits and vegetables.