Multiple Choice
Which of the following is an effect of foreign investment by multinationals on a host nation?
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7. Externalities
Externalities: Social Benefits and Social Costs
Multiple Choice
Which of the following is a consequence of the perishable quality of services?
A
Services can be easily standardized and mass-produced.
B
Services can be separated from their providers.
C
Unsold service capacity cannot be stored for future use.
D
The quality of services does not vary over time.
Verified step by step guidance1
Understand the concept of perishability in services: Perishability means that services cannot be stored, saved, or inventoried for later use. Once the service time has passed, any unused capacity is lost forever.
Analyze each option in the context of perishability: For example, 'Services can be easily standardized and mass-produced' relates more to the nature of the service rather than perishability.
Consider 'Services can be separated from their providers': This relates to inseparability, not perishability.
Evaluate 'Unsold service capacity cannot be stored for future use': This directly reflects the perishability characteristic, as unused service opportunities cannot be saved.
Review 'The quality of services does not vary over time': This relates to variability, not perishability, so it is not a consequence of perishability.
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