Goods and services

1. Goods and services

2. What are need ? • Give me the examples of those needs • Health, electricity, security, education • Water, shelter, food, clothes, transport • Cell phone, money, luxury clothes,…. • Mention anything that can satisfy those needs above ?

3. All the things that satisfy needs and wants of the consumers are known as goods and services. Goods – are things that we can see, feel, and touch. Take home with you, you own it Services – are things that other people do for you and you pay the for it Goods and services

4. corrections • 1. tables, chairs, school bag, pencil, ball pen etc • Hospitals, schools, banks, spa, library etc • Bakery – goods library- service • School- service hospital- service • Supermarket- goods gym- service • Spaza shop- good bank-service

5. Free goods– Goods that are freely available and not scarce. These goods are usually provided by nature. E.g. Air, soil, rain water etc. Types of Goods • Free goods– Goods that are freely available and not scarce. These goods are usually provided by nature. E.g. Air, soil, rain water etc. 2

6. Economic goods • Economic goods– are goods that are produced by businesses and have to be paid for.

7. 3Categories of economic goods • Consumer goods – Those products that are directly involved in satisfying consumer’s needs and wants. • Two classes of consumer goods • Durable consumer goods- last for a long period of time. • Non-durable consumer goods – lasts for a short period of time or are consumed quickly.

8. Categories of economic goods • Capital goods – are those goods that are used to produce other goods and services, e.g. machinery and delivery vehicles.

9. Semi-finished goods – goods that are used to manufacture other goods. E.g. fabrics/ cloths to make clothes, steel to make gates; leather to make shoes, flour to make bread

10. Essential services Essential services are services that we nned every day such as waste removal, public transport and electricity.

11. Services that we do not really need to function but are nice to have, e.g garden services Non- essential services

12. CLASS ACTIVITY • Goods and services in the community. • Identify whether the pictures are goods businesses or service businesses. • Home activity • Paste two examples of each type of good or service.

13. What do we call the people who produce these goods and services?

14. Producers is the person, household, business or government who make goods and services to satisfy people’s needs and wants. What about the people who buy this goods, what do we call them? Consumers Are individuals, households companies and government agencies that uses goods and services that have been made by producers to satisfy needs and wants. We call them producers

15. Different sectors of economy where producers participates • Primary sector – sector of the economy that produces raw materials. E.g. Fishing, Farming • Secondary sector – sector of the economy that uses raw materials to produce finished goods. Production of jewellery and processed foods, butchery. • Tertiary sector – sector of the economy that produces services. E.g. Distribution of goods to retail stores, provision of personal services like hairdressing and medical services.