Services
Topic: Scarcity, Choice and Economic Systems · NCERT: Class 12, Ch 1 "Introduction (Microeconomics)"
Meaning
Services are the intangible satisfaction of wants and needs. "Intangible" means they cannot be touched or stored. They are tasks people do for others, not physical objects. Services are usually produced and used at the same moment. Doctors, teachers, lawyers, drivers and bankers all provide services.
Example
A doctor examining a patient, a teacher taking a class and a truck driver moving goods from Mumbai to Pune all provide services. The patient pays a fee (a payment for professional services), but takes home no physical product from the check-up itself.
Don't confuse with
- Goods: goods are physical, tangible objects such as food and clothes that can be stored and carried.
- Unpaid household services: cooking or childcare done by family members is also a service. But it is outside the GDP boundary (UN SNA 2008), so it is not counted in national income.