Which of the following exemplifies a service?

• A. A loaf of bread
• B. A haircut at a salon
• C. A pair of shoes
• D. A smartphone

Answer: (B)

Verified step by step guidance

1. Understand the difference between goods and services: Goods are tangible products that can be touched and stored, while services are intangible activities or benefits provided to consumers.
2. Identify each option as either a good or a service: A loaf of bread, a pair of shoes, and a smartphone are all physical items you can hold, so they are goods.
3. Recognize that a haircut at a salon is an activity performed by a person, which cannot be physically possessed, making it a service.
4. Confirm that the correct example of a service among the options is the haircut at a salon because it involves providing a benefit through an action rather than a physical product.
5. Summarize that services are characterized by intangibility, inseparability, variability, and perishability, which distinguishes them from goods.