Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which term would not relate to goods in economic terms?

1. Physical products that satisfy wants

2. Nontangible services that provide satisfaction

3. Items with economic utility

4. Products essential for daily living

The correct answer is: Nontangible services that provide satisfaction

The term that would not relate to goods in economic terms is nontangible services that provide satisfaction. Economic goods are primarily physical objects or products that can be touched, owned, and exchanged in the marketplace. Goods are tangible items that fulfill a need or desire, whether they are consumer goods (like food and clothing) or capital goods (like machinery and equipment). In contrast, services are intangible; they are activities or benefits provided to consumers, such as haircuts, legal counsel, and education. While services do provide satisfaction, they do not meet the traditional definition of a good as they cannot be physically possessed or owned. This distinction between tangible goods and intangible services is fundamental in economics, which categorizes these concepts differently. The other terms listed all relate directly to goods as they emphasize the physical, quantifiable nature of economic products that are traded and consumed.