Understanding Goods, Services, and Market Roles

1. What is a good?

Something you buy and consume. Goods are things that you can keep, eat, or use.

A positive or favorable quality or attribute.

An activity that brings pleasure or joy.

A polite or kind action towards others.

In economics, 'good' refers to a tangible product that can be bought, consumed, used, or kept. It is distinct from qualities, activities, or actions.

Explanation

In economics, 'good' refers to a tangible product that can be bought, consumed, used, or kept. It is distinct from qualities, activities, or actions.

2. What is a service?

A tangible item that can be physically held or touched

An intangible concept that cannot be purchased

An act of self-service where you do things yourself without assistance

A service is something that someone does for you, typically involving hiring people to perform work, rather than purchasing a tangible item or doing things yourself.

Explanation

A service is something that someone does for you, typically involving hiring people to perform work, rather than purchasing a tangible item or doing things yourself.

3. What is a producer?

A person, company, or country that makes, grows, or supplies goods or commodities for sale.

A distributor who transports goods from the manufacturer to retailers.

A consumer who purchases goods or commodities for personal use.

A manufacturer who designs and creates new products for the market.

A producer is involved in the production of goods or commodities, not in purchasing them for personal use, distributing them, or designing new products.

Explanation

A producer is involved in the production of goods or commodities, not in purchasing them for personal use, distributing them, or designing new products.

4. What is a consumer?

A person who invests in stocks and bonds.

A person who produces goods and services.

A person who purchases goods and services for personal use.

A person who sells goods and services.

A consumer is an individual who buys goods and services for their own personal use, not for selling, producing, or investing purposes.

Explanation

A consumer is an individual who buys goods and services for their own personal use, not for selling, producing, or investing purposes.

5. What is the definition of purchase?

To give away for free

To obtain by paying money or its equivalent

To borrow temporarily

To steal

A purchase involves obtaining something by exchanging money or its equivalent, therefore the correct answer is 'to obtain by paying money or its equivalent'. The other options are incorrect as they do not align with the concept of a purchase.

Explanation

A purchase involves obtaining something by exchanging money or its equivalent, therefore the correct answer is 'to obtain by paying money or its equivalent'. The other options are incorrect as they do not align with the concept of a purchase.