1. ECONOMIC GOODS AND
SERVICES
PRESENTED BY
N.D ZWANE

2. LESSON OUTCOME
 At the end of the lesson the learner
must be able to:
 Define economic goods and services
 Distinguish between the economic
good and free good
 Explain type of goods and give
example

3. WHAT ARE ECONOMIC
GOODS AND SERVICES?
 They are the goods and services that
households, business sector and
government are prepared to pay price
for.

4. Distinguish between economic
goods and free goods
ECONOMIC GOOD FREE GOOD
Created by man Created by nature
They command the price No price
Have utility and exchange value Have utility but have no exchange
rate
Production has an opportunity cost Production has no opportunity cost
e.g. cars, piped water, electricity e.g. sea water, rain water, air
etc.

5. ECONOMIC GOODS AND
SERVICES CAN BE DIVIDED
INTO:
1 final goods and services
All manufactured goods and
services that are ready to
satisfy consumer’s needs and
wants.

6. 2 intermediate gods and serviced or
capital goods.
These are goods
that are used to
produce other
goods and
services

7. HOME WORK
 Distinguish between economic goods
and free goods and give examples.
 Define economic goods and services