Question

One way to differentiate between goods and services is that services such as education, insurance, and tourism are __, while goods such as automobiles are tangible.

a) Intangible
b) Perishable
c) Homogeneous
d) Heterogeneous

Answer 1

Services are intangible, whereas goods are tangible items that can be physically touched and owned. The correct answer to what differentiates services from goods is 'intangible.'

Step-by-step explanation:

One way to differentiate between goods and services is that services such as education, insurance, and tourism are intangible, while goods such as automobiles are tangible.

The correct answer to the question is a) Intangible. Services like haircuts, insurance, banking, and a visit to the dentist are examples where the consumer is paying for something they cannot physically touch, hence these services are intangible in nature. On the other hand, goods are tangible; they are items that consumers acquire and can physically touch, such as cars, computers, and food products.