Understanding Goods and Services

What is the primary difference between goods and services?

• Goods are tangible items, while services are intangible.

• Goods are intangible, while services are tangible.

• Goods are always more expensive than services.

• Services can be stored, but goods cannot.

Which of the following is an example of a service?

• A loaf of bread

• A haircut

• A pair of shoes

• A book

Which of the following is considered a good?

• Teaching

• Plumbing repair

• A smartphone

• Legal advice

Which of the following is a characteristic of services?

• They can be stored for later use.

• They are produced and consumed simultaneously.

• They are always cheaper than goods.

• They do not require human interaction.

What is the term for the process of creating goods and services?

• Consumption

• Distribution

• Production

• Exchange

What is the term for the amount of a good or service that consumers are willing and able to purchase at a given price?

• Supply

• Demand

• Market

• Equilibrium

Which of the following is an example of a service industry?

• Agriculture

• Manufacturing

• Retail

• Healthcare

Which of the following is an example of a tangible good?

• Consulting service

• Online course

• Furniture

• Software subscription

What is a key feature of a service-based business?

• High inventory costs

• Physical product delivery

• Customer interaction

• Long production cycles

Which of the following best describes a durable good?

• A product that is consumed quickly

• A product that lasts for a long time

• A service that is used frequently

• A service that is intangible