Chapter 1 - What is Economics?

The study of how people seek to satisfy their unlimited and competing needs and wants with the use of resources and by making choices

• consumer goods

• demand

• want

• economics

goods that are used in producing other goods used by businesses, such as machinery or equipment

• capital goods

• nondurable goods

• supply

• consumer goods

food, clothing, fuel

• goods

• capital goods

• nondurable goods examples

• consumer goods

a useful, tangible item that we buy

• goods

• services

• economics

• nondurable goods examples

The amount of goods available

• goods

• capital goods

• supply

• nondurable goods

manufactured items that have a life span longer than three years

• want

• tradeoff

• supply

• durable goods

Tangible items that are consumed within a short time (less than three years)

• capital goods

• value

• consumer goods

• nondurable goods

Consumer willingness and ability to buy products

• economics

• scarcity

• consumer goods

• demand

Ability or capacity of a good or service to be useful and give satisfaction to someone.

• scarcity

• utility

• value

• services

Limited quantities of resources to meet unlimited wants

• value

• scarcity

• demand

• utility