What is service in economics?

Service by definition in economics is an act or other use that is paid for by a customer. When discussing things that people pay for in economic terms, the two categories are goods and services. Goods are tangible items that one can hold and interact with, whereas services are intangible but still provide a value to the customer.

How are services different in economics?

Services in economics by definition are different in that they have unique characteristics that define what gives them value in the same way a good would have without being a material object. These characteristics are as follows: Intangible — Services cannot be held or possessed, as they are not physical objects.

What are examples of services in economics?

Utilities such as electricity and water, construction, and cleaning are examples of services. Clothing, electronics, and food are examples of goods. What is the definition of services in economics? Services in economics are acts and uses that are valuable to customers. They are businesses that save customers time or money.