Question

What is the difference between goods and services?

• A. Goods are bought whereas services cannot be bought.
• B. Services are tangible whereas goods are intangible.
• C. Goods are tangible whereas services are intangible.
• D. There is no difference.

Answer 1

The correct option is C Goods are tangible whereas services are intangible.

The difference between services and goods are that services are intangible whereas goods are tangible. We can only experience a service. Teaching is one example of a service. Goods can be seen and used. Books, building which are used by a teacher to teach are considered as goods. Both goods and services can be purchased.