Which of the following is NOT an example of a consumer good or service?

• A. A haircut at a local salon
• B. A smartphone purchased for personal use
• C. A loaf of bread bought at a grocery store
• D. A factory machine used to produce cars

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the definition of a consumer good or service. Consumer goods and services are products or services purchased by individuals for personal use or consumption, rather than for producing other goods or services.
2. Step 2: Identify examples of consumer goods or services from the options given. For instance, a haircut at a local salon is a service consumed personally, a smartphone purchased for personal use is a consumer good, and a loaf of bread bought at a grocery store is a consumer good.
3. Step 3: Recognize that a factory machine used to produce cars is not a consumer good or service because it is used in the production process to make other goods (cars), making it a capital good instead.
4. Step 4: Conclude that the factory machine is the correct answer as it does not fit the category of consumer goods or services.
5. Step 5: Summarize that consumer goods and services are intended for direct consumption, while capital goods are used to produce other goods.