Editing Service (economics) (section)

==Service-commodity goods continuum==
[[File:Service-goods continuum.png|thumb|Service-Commodity Goods continuum]]

The distinction between a good and a service remains disputed. The perspective in the late-eighteenth and early-nineteenth centuries focused on creation and possession of wealth. Classical economists contended that goods were objects of value over which ownership rights could be established and exchanged. Ownership implied tangible possession of an object that had been acquired through purchase, barter or gift from the producer or previous owner and was legally identifiable as the property of the current owner.

[[Adam Smith]]'s famous book, ''[[The Wealth of Nations]]'', published in [[1776]], distinguished between the outputs of what he termed "productive" and "unproductive" labor. The former, he stated, produced goods that could be stored after production and subsequently exchanged for money or other items of value. The latter, however useful or necessary, created services that perished at the time of production and therefore did not contribute to wealth. Building on this theme, French economist Jean-Baptiste Say argued that production and consumption were inseparable in services, coining the term "immaterial products" to describe them.

In the modern day, Gustofsson & Johnson describe a continuum with pure service on one terminal point and pure [[commodity|commodity good]] on the other.<ref>Anders Gustofsson and Michael D. Johnson, Competing in a Service Economy (San Francisco: Josey-Bass, 2003), p.7.</ref> Most [[product (business)|products]] fall between these two extremes. For example, a [[restaurant]] provides a physical good (the [[food]]), but also provides services in the form of ambience, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods — like water utilities that deliver water — utilities are usually treated as services.{{Citation needed|date=August 2022}}