Goods and Services

Almost everyone needs goods and services. People use money and trade for goods and services that they want or need.

Goods are things that are made or grown. Some goods are made, such as clothes, computers, and cars. Other goods are grown such as fruits and vegetables. All goods are made from natural resources. This does not mean that the good is a natural resource. For example, a table may be made from the wood of a tree. While the tree is a natural resource, the table would not be a natural resource.

Some of the goods that are made in the United States are sent to other countries. Those goods are called exports. Some goods are made in other countries and are shipped to the United States. These goods are called imports.

A service is work that someone does for someone else. A doctor and police are people who provide services. Some services are paid for by taxes, or money paid to the government. Taxes pay people like public school teachers and police officers for their services. Other services are not paid for with taxes. These services include lawn care, hair salons, and taxi drivers.

People that make goods are called producers, because they make or produce goods. People that purchase goods and services are called consumers. Many people are both producers and consumers. Producers depend on consumers to purchase their products. This allows them to make a profit. Consumers depend on producers to make the goods that they want and need. This is called interdependence.

STUDENTS: After reading the text and looking at the 2 world maps, answer the following prompt.  Goods and Services are sent from the United States all over the world.  Do you think that the United States is dependent on imports from other continents?  Why or why not?