In Which of the Following Ways Is Product Development Different

question 63

Multiple Choice

In which of the following ways is product development different for services than for physical goods?

• A) Instead of gathering product ideas, the company goes immediately to the testing phase.
• B) Instead of screening ideas, the company tests all of them, since no prototype is needed.
• C) Instead of creating a prototype, the company develops a service process design.
• D) The business analysis step is not needed, since there are no production costs with services.
• E) The commercialization step is gradual for services, but rapid for physical goods.

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Definitions:

Net Capital Outflow

The net balance resulting from domestic residents buying foreign assets and foreigners buying domestic assets.

Real Interest Rate

The interest rate adjusted for inflation, indicating the real profit of an investment or the real cost of borrowing.

Government Budget Deficit

A financial situation that occurs when a government's expenditures exceed its revenues in a given fiscal period.

National Saving

National saving, also known as domestic saving, is the sum of private and public saving, representing the part of national income that is not consumed or spent by the government.