Why Is Inventory of Services Different from That of Products

question 123

Multiple Choice

Why is inventory of services different from that of products?

• A)Time is less important to customers of services than customers of products.
• B)Only service inventory can be reduced through more efficient movement of products.
• C)There are larger costs associated with the handling of service inventory.
• D)Unlike goods providers, the service provider is often unavailable when there is a demand for the service.
• E)Service inventory costs are related to idle production capacity rather than storage or handling.

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Definitions:

Phillips Curve

A curve that shows the short-run trade-off between inflation and unemployment.

Economic Outcomes

The results or consequences of economic activities and decisions on an individual, regional, or global level, including factors like growth, employment, and wealth distribution.

Natural Rate

The concept of a 'natural rate' often applies to unemployment, referring to the level of unemployment consistent with a stable rate of inflation, not precipitated by short-term economic fluctuations.

Money Supply

The sum of all financial resources available in an economy at a given moment, encompassing cash, coins, and funds in checking and savings accounts.