The major difference between a good and a service is how the producer uses the factors of production to create each.

a. True
b. False

Respuesta :

Goods, as well as, services are the two key items that are offered to the consumers and ensure the occurrence of economic activities to take place.

The statement asserting that 'the key distinction between goods and services is that the manner the producer employs various factors in producing them' would be considered:

b). False.

  • The goods are characterized as the physical objects or items that a producer produces employing different factors like capital, labor, land, etc. to offer it to the consumers for an amount in return.

Examples, clothes, shoes, jewelry, etc.

  • While the services are the activity or the aid that is provided to them through a set of individuals in order to make the tasks easier for them.

Example: Barber, Tutor, Doctors, etc.

Thus, the statement is false as services are not produced but offered.

Learn more about 'goods and services' here:

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