Lecture #5: Basic Economic Language

Fill out B3 as we go through these notes

Goods & Services All Things All things people want are either tangible or intangible Tangible Something that can be felt by touch Example—book, car, etc. Remember when taking Cornell Notes you need to come up with at least 3 questions per page!

Goods & Services cont. intangible Something that cannot be felt by touch Example—friendship, knowledge, experience.

Goods & Services cont. good anything that satisfies a person’s wants or brings satisfaction Utility a good that brings a person satisfaction or happiness Disutility a good that brings a person dissatisfaction or unhappiness

Goods & Services cont. Services another ex of a tangible good tasks that you pay other people Ex: doctors, hair-stylists, car mechanics, etc.

Resources Goods & Services cannot be produced w/out resources Types of resources a.k.a Factors of Production Land: Natural resources used to produce goods and services Includes: water, minerals, animals, nature, forests Draw an example in your notes!

Resources cont. Types of resources a.k.a Factors of Production Labor: Any effort a person devotes to a task for which they are paid. Weatherperson, economics teacher, construction worker Draw an example in your notes!

Resources cont. Types of resources a.k.a Factors of Production Capital: Any human-made resource used to create other goods and services. Machines, tools, computers, trucks, buildings, factories, etc. Draw an example in your notes!

Resources cont. Types of resources a.k.a Factors of Production Entrepreneurship: a person who develops new businesses, products, or new ways of doing things. Steve Jobs—Apple & iPod Draw an example in your notes!

Copy this chart in your notes Land Popping Corn Wheat Labor The human effort needed to pop the corn Capital Corn-Popping Device

Summary When completing your notes you need to write a 3-5 sentence summary of the lecture. This is a part of your notes grade!