Economic Goods and Services

What I WANT You to Know  WANT  Have a desire to possess or do something you wish  ECONOMIC WANT  Desires that can be satisfied by consuming a good, service, or leisure activity

Economic v. Non-Economic Wants ECONOMIC  Cost Money  Examples:  Food  Clothing  Amusements Parks  Music NON-ECONOMIC  Does Not Cost Money  Examples:  Going to the Park  Going to the Ocean  Public Library  Jazz in June

Goods Tangible items that people can buy & sell  Consumer Goods  Clothing  Food  Tables  Cars  iTunes  Industrial Goods  Steel  Aluminum  Tires  Pallets  Concrete

Services Activities that are done for you by someone else  Consumer Services  Hair Cut  Medical Examination  Car Wash  Cable  Netflix  Industrial Services  Machine Repairs  IT Help  Poll Service  Marketing  Secret Shop

Why Can’t I Have Everything??  Scarcity  We have more WANTS then we have MEANS to obtain them  More Scarce = Higher Price  Less Scarce = Lower Price

Your Affect on Price  Supply & Demand  Businesses control SUPPLY  You (the consumer) control DEMAND  When you DEMAND an item…  Businesses will be willing to SUPPLY them

Do They Provide A “Good” or “Service”? BusinessGoodServiceBoth Trader Joe’s Chipotle Star Tran Time Warner Marcus Movie Theatres Barnes & Noble Williams Cleaners United States Postal Service X X X X X X X X

QUESTION ONE  A characteristic of human wants is that they are  A.limited  B.unchanging  C.unlimited  D.consistent

QUESTION ONE  A characteristic of human wants is that they are  A.limited  B.unchanging  C.UNLIMITED  D.consistent

QUESTION TWO  What determines whether an economic product is an industrial product or a consumer product?  A.Who buys and uses the product  B.The price of the product  C.Who produces the product  D.The origin of the product

QUESTION TWO  What determines whether an economic product is an industrial product or a consumer product?  A.WHO BUYS AND USES THE PRODUCT  B.The price of the product  C.Who produces the product  D.The origin of the product

QUESTION THREE  Producers respond to consumers' positive economic votes by  A.producing more industrial goods  B.decreasing production  C.increasing production  D.classifying their goods and services

QUESTION THREE  Producers respond to consumers' positive economic votes by  A.producing more industrial goods  B.decreasing production  C.INCREASING PRODUCTION  D.classifying their goods and services

QUESTION FOUR  A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.  A.consumer  B.capital  C.ultimate  D.industrial

QUESTION FOUR  A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.  A.CONSUMER  B.capital  C.ultimate  D.industrial

QUESTION FIVE  If a good or service is scarce, consumers will usually be  A.willing to pay more money to get it  B.uninterested in owning it  C.able to get as much of it as they want  D.unwilling to buy it

QUESTION FIVE  If a good or service is scarce, consumers will usually be  A.WILLING TO PAY MONEY TO GET IT  B.uninterested in owning it  C.able to get as much of it as they want  D.unwilling to buy it