Which of the following is considered a service in economics?

• A. A smartphone purchased online
• B. A haircut at a salon
• C. A car manufactured in a factory
• D. A loaf of bread from a bakery

Answer: (B)

Verified step by step guidance

1. Understand the difference between goods and services in economics. Goods are tangible products that can be touched and stored, while services are intangible activities or benefits provided to consumers.
2. Identify each option and classify it as either a good or a service. For example, a smartphone, a car, and a loaf of bread are physical items, so they are goods.
3. Recognize that a haircut at a salon is an activity performed by a person, which cannot be stored or touched, making it an intangible service.
4. Confirm that the correct answer is the option representing a service, which is the haircut at a salon.
5. Summarize that in economics, services involve providing value through actions or activities rather than physical products.