Which of the following statements is NOT true regarding the differences between goods and services?

• A. Goods are tangible, while services are intangible.
• B. Goods can be stored for future use, but services cannot be stored.
• C. Production and consumption of services often occur simultaneously, unlike goods.
• D. Services can be resold in secondary markets, but goods cannot.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the key characteristics of goods and services. Goods are tangible items that can be touched and stored, while services are intangible and cannot be physically stored.
2. Step 2: Recognize that goods can be stored for future use, but services are typically consumed at the time they are produced, meaning production and consumption often happen simultaneously for services.
3. Step 3: Analyze the statement about resale: Goods can generally be resold in secondary markets (like used cars or secondhand electronics), whereas services usually cannot be resold because they are consumed at the point of delivery and are intangible.
4. Step 4: Identify the false statement by comparing it to these characteristics. The statement claiming 'Services can be resold in secondary markets, but goods cannot' contradicts the typical economic understanding.
5. Step 5: Conclude that the incorrect statement is the one about services being resold and goods not being resold, as it reverses the actual economic properties of goods and services.