Future Business Leaders of America (FBLA) Agribusiness Practice Test

What type of economic products are defined as non-tangible and cannot be held or stored?

1. Goods

2. Services

3. Needs

4. Wants

The correct answer is: Services

The correct answer is services, as this type of economic product is characterized by being non-tangible, meaning they cannot be physically touched, held, or stored. Services involve activities or benefits that are provided to consumers, such as healthcare, education, and entertainment. Unlike goods, which are tangible items that can be manufactured and stored until they are sold, services are consumed at the point of delivery. Understanding this distinction is essential in the context of business and economics because it highlights how services are produced and consumed differently compared to physical products. While goods can be inventoried and their availability can directly affect supply and demand, services are often reliant on the interaction between the provider and the customer at the time of consumption. This understanding is crucial for businesses that focus on service-oriented models. The other options refer to concepts related to wants and needs but do not specifically address the tangible versus non-tangible nature of economic products, making service the clear choice for this question.