What are Services in economic terms?

Services, in economic terms, are defined as non-tangible products that cannot be touched. This differentiates them from goods, which are tangible objects that people can physically interact with. Services are characterized by their intangibility, meaning they cannot be owned or stored like physical products. Instead, they are experienced or utilized at the point of delivery, such as when a person receives a haircut, an educational lesson, or medical care.

Understanding this distinction is crucial in fields like agribusiness. For example, agribusiness services can include consulting, pest management, and crop insurance, all of which offer benefits without providing a physical product. This concept is integral to grasping the broader economic framework and how businesses develop strategies around tangible goods versus intangible services.