Goods and Services

Grade 1 · Social Studies · Study Guide

Learn the difference between goods (things you can touch) and services (things people do for you).

Every day, people buy and sell things they need. These things fall into two groups called goods and services.

Goods are physical things that people make or grow. You can hold, touch, and keep goods. Food like apples and bread are goods. Toys, books, shoes, and clothing are also goods. When you buy something at a store, you are usually buying a good.

Services are things that people do for other people. You cannot hold a service, but it still helps you. A doctor helps keep you healthy. That is a service. A teacher helps you learn. That is a service too. A barber cuts your hair, a firefighter keeps you safe, and a bus driver takes you to school. All of these are services.

Some workers provide both goods and services. A baker makes bread (a good) and also serves you at the counter (a service).

People work to earn money so they can buy the goods and services they need. Communities need both goods and services to help everyone live well and be happy. Workers who provide goods and services are very important to our community.

Key terms

goods: Physical things that people make or grow that you can touch and keep
services: Things that people do to help others
producer: A person who makes or grows goods or provides services
consumer: A person who buys and uses goods or services
community: A group of people living and working together in the same area

Flashcards

goods: Physical things you can touch and buy, like food, toys, or clothing
services: Things people do to help others, like teaching, doctoring, or driving a bus
producer: A person who makes goods or provides services
consumer: A person who buys and uses goods or services
trade: Giving something in exchange for something else
need: Something you must have to live, like food, water, or shelter
want: Something you would like to have but do not need to survive

Questions

Which of these is a GOOD?
1. A doctor visit
2. A pair of shoes
3. A haircut
4. A bus ride
Show answer
Answer: A pair of shoes
Shoes are a good because they are a physical thing you can touch, wear, and keep.
A service is something you can hold in your hands.
Show answer
Answer: False
A service is something someone does for you, not a physical object. You cannot hold a haircut or a lesson in your hands.
Things you can touch and buy at a store are called _____.
Show answer
Answer: goods
Goods are physical things you can touch and buy at a store, like food, books, and toys.
Which of these is a SERVICE?
1. An apple
2. A book
3. A teacher helping you learn
4. A toy car
Show answer
Answer: A teacher helping you learn
A teacher helping you learn is a service because it is something a person does for you, not an object you can hold.
Workers who provide goods and services are important to a community.
Show answer
Answer: True
Communities depend on workers who provide goods and services so everyone can have what they need to live well.

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