Define services and goods.
Services are those separately identifiable, essentially intangible activities that provide satisfaction of wants and are not necessarily linked to the sale of a product or another service. Services are all those economic activities that are intangible and imply an interaction to be realised between the service provider and the consumer. A service is an act which cannot be taken home; what we can take home is the effect of the services. Their purchase does not result in the ownership of anything physical.
Goods are physical products capable of being delivered to a purchaser and involve the transfer of ownership from seller to customer. While goods are produced, services are performed. Goods are generally used to refer to commodities or items of all types, except services, involved in trade or commerce.
Explanation
The answer draws directly from the textbook definitions. Services are defined as intangible activities requiring interaction between provider and consumer, with no transfer of ownership. Goods are defined as physical products that can be delivered and involve ownership transfer. The key distinction highlighted is that goods are 'produced' while services are 'performed'.