Econ Final Review

What is Economics?

• Something we would like to have but is not necessary for survival.

• Basic requirement for survival.

• Social Science concerned with the production, distribution, and consumption of goods and services.

• Monetary ($) worth of a good or service. 

What is a need?

• Something we would like to have but is not necessary for survival.

• Basic requirement for survival.

• A useful/tangible item that can satisfy a want/need.

• Work that is performed for someone.

What is a want?

• Something we would like to have but is not necessary for survival.

• Basic requirement for survival.

• A useful/tangible item that can satisfy a want/need.

• Work that is performed for someone.

What is a good?

• Something we would like to have but is not necessary for survival.

• Basic requirement for survival.

• A useful/tangible item that can satisfy a want/need.

• Work that is performed for someone.

What is a service?

• Something we would like to have but is not necessary for survival.

• Basic requirement for survival.

• A useful/tangible item that can satisfy a want/need.

• Work that is performed for someone.

What is a capital good?

• Intended for final use by individuals.

• Tool/equipment used to make other goods.

• Lasts for less than 3 years w/ regular use.

• Lasts for 3+ years w/ regular use.

What is a consumer good?

• Intended for final use by individuals.

• Tool/equipment used to make other goods.

• Lasts for less than 3 years w/ regular use.

• Lasts for 3+ years w/ regular use.

What is Opportunity Cost?

• The value of the next best choice/alternative.

• When some necessities cost less than some wants.

• Monetary ($) worth of a good or service.

• The accumulation of products that are tangible, scarce, have utility, and are transferable.

What is a Producer?

• Those who use goods and services.

• Natural resources not created by people.

• Those who make/provide goods and services.

• Tools/equipment used in production.

What is a Consumer?

• Those who use goods and services.

• Natural resources not created by people.

• Those who make/provide goods and services.

• Tools/equipment used in production.