ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Goods are tangible, as in these have a physical presence and they can be touched, while services are intangible in nature. The purpose of both goods and services is to provide utility and satisfaction to the consumer.

Detailed explanation-2: -Services are the amenities, benefits or facilities provided by the other persons. Goods are tangible items i.e. they can be seen or touched whereas services are intangible items. When the buyer purchases the goods by paying the consideration, the ownership of goods moves from the seller to the buyer.

Detailed explanation-3: -Services can be distinguished from products because they are intangible, inseparable from the production process, variable, and perishable. Services are intangible because they can often not be seen, tasted, felt, heard, or smelled before they are purchased.

Detailed explanation-4: -Goods are items with a physical existence; when we buy a good, we acquire a tangible product. However, services are transactions that do involve the transfer of ownership from the seller to the buyer. For example, when we acquire legal services from a lawyer, we do not acquire a physical product.

Detailed explanation-5: -Which is not true regarding differences between goods and services? Goods tend to have higher customer interaction than services. Which is not true regarding the differences between goods and services? Tangible goods are generally produced and consumed simultaneously; services are not.