Goods and services
Everything people buy is either a good or a service.
Goods
Goods are things that are made or grown. You can touch them and use them.
- apples and bread
- shoes and jackets
- books and pencils
- bikes and toys
- cars and computers
Services
Services are work that people do for others. You can’t hold a service in your hand, but it helps you.
- a haircut
- a doctor’s check-up
- teaching a class
- fixing a car
- delivering mail
- cleaning a house
- driving a bus
Good or service?
| Good | Service |
|---|---|
| a pizza | a pizza delivery |
| a toothbrush | a visit to the dentist |
| a library book | a librarian helping you find a book |
| a bike | a bike repair |
| a cake | a baker decorating a cake for you |
Trick: If you can hold it, it’s probably a good. If someone is doing something for you, it’s a service.
Producers and consumers
- A producer makes goods or provides services. A farmer, a baker and a hair stylist are producers.
- A consumer buys or uses goods and services. When you buy a snack, you are a consumer!
Everyone is a consumer. Grown-ups who work are also producers.
Jobs
A job is work a person does to earn money. People use the money they earn to buy goods and services for their families.
Jobs that make goods
- farmers grow food
- bakers make bread and cakes
- builders build houses
- factory workers make cars, clothes and toys
- artists make paintings
Jobs that provide services
- teachers help children learn
- doctors and nurses help people get well
- firefighters and police officers keep us safe
- mail carriers deliver letters
- bus drivers help people get around
- cashiers help people buy things
How goods get to you
Let’s follow an apple!
- A farmer grows apples in an orchard.
- Pickers pick the apples.
- A truck driver takes them to a store.
- A store worker puts them on the shelf.
- A cashier helps you buy one.
- You, the consumer, eat it! Crunch!
Many workers help make and move the goods we use every day.
Working together
People depend on each other. The baker needs the farmer to grow wheat. The farmer needs the mechanic to fix the tractor. The mechanic needs the teacher to teach their children. When everyone does their job, the whole community works.
Try it yourself
- Sort these into goods or services: a sandwich, a haircut, a teddy bear, a check-up, a soccer ball, a car wash.
- Draw a picture of a job you’d like to have when you grow up. Does it make goods or provide services?
- Ask a grown-up about their job. Do they make goods or provide services?
- Set up a pretend store or restaurant. Take turns being the producer and the consumer.
Quick recap
- Goods are things you can touch and use.
- Services are work people do for others.
- Producers make goods or provide services; consumers buy and use them.
- People have jobs to earn money.
- Many workers help bring goods and services to us.