Question

Differentiate between:

• Goods and services
• Demand and supply
• Wealth and money

Answer 1

Explanation:

Give the meaning of each term as the basic point of difference between them.

Solution:

Goods	Services
Goods are those visible things that satisfy human wants. Example: vehicle, house, food etc.	Services are those intangible activities that satisfy human wants. Example: teaching, nursing etc.

Demand	Supply
Demand refers to the quantities of a commodity that the consumers are able and willing to buy at each possible price during a given period of time, other things being equal.	Supply means, the quantities of a commodity which a seller is prepared to sell at given prices in a given period of time.

Wealth	Money
All those goods and services for which we have to pay a price for their consumption are called wealth. Example: book, pen, land etc.	Money can be defined as anything that is recognised by the government and is widely accepted as a medium of exchange in the transfer of goods. Example: rupee in India, dollar in U.S.A.