Of the Primary Differences Between Tangible Goods and Services Involves

question 64

Multiple Choice

of the primary differences between tangible goods and services involves a consumer's ability to make prepurchase evaluations.For example,consumers can easily evaluate shoes,jewelry,and skis before making a purchase.On the other hand,consumers can evaluate services such as restaurants,ski instructors,and tanning salons only during or after their purchase.Indeed,tangible products have __________ properties,whereas services have __________ properties.

• A) consistent; inconsistent
• B) search; experience
• C) inconsistent; consistent
• D) experience; search
• E) gap; encounter

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Definitions:

Fed

Short for the Federal Reserve System, it is the central banking system of the United States, responsible for monetary policy.

Reserves

Deposits that banks have received but have not loaned out.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period.

Spending Multiplier

The ratio of the change in total output to the initial change in spending that brought it about.