Which of the following is an example of a service?

Which of the following is an example of a service?

• A. A loaf of bread
• B. A car
• C. A haircut
• D. A tank of gas

Answer: (C)

This question tests distinguishing between a service and a good. A service is an action performed for someone that provides value through labor rather than delivering a physical item. A haircut is an action performed by a stylist for you; the benefit is the change in your appearance, not a tangible object you take home. The other options are tangible goods: bread is a physical product, a car is a physical object, and a tank of gas is a tangible fuel product. So the best example of a service is a haircut because it is the performing of work for the customer rather than delivering a physical item.

This question tests distinguishing between a service and a good. A service is an action performed for someone that provides value through labor rather than delivering a physical item. A haircut is an action performed by a stylist for you; the benefit is the change in your appearance, not a tangible object you take home. The other options are tangible goods: bread is a physical product, a car is a physical object, and a tank of gas is a tangible fuel product. So the best example of a service is a haircut because it is the performing of work for the customer rather than delivering a physical item.