chapter 1 section 2 Flashcards
(37 cards)
what are goods?
useful, tangible items
what are the types of goods?
consumer goods, capital goods, durable and nondurable goods
what is a consumer good?
goods intended for final use by indivisuals/ consumers
what is a capital good?
goods manufactured by other goods
what is a durable good?
a good that lasts 3 years or more
what is a nondurable good?
goods that last less than 3 years
example of a good?
book, car, cd player
example of a capital good?
an oven in a bakery
example of a consumer good?
shampoo, washing machine
example of a durable good?
laptop, phone, dishwasher
what are services?
work or labour performed for someone
example of a nondurable good?
paper towels, toothpaste
what is the difference between a good and a service?
a good is tangible wihle services are not
who are consumers?
people who use goods and services to satisfy their wants and needs
what does the value of a good or service depend on?
scarcity and utility
what is the paradox of value?
the conclusion that necessities such as water have a very low monetary value and non necessities such as diamonds have a high monetary value
what does value mean?
a worth that can be expressed in dollars and cents
what is the solution to the paradox of value?
for something to have value, it must be scarce and have utility
what is counted as wealth?
goods
what is wealth?
the accumulation of products that are tangible, scarce, useful, and ttransferrable
what does tangible mean?
you can touch it
what is a market?
location or mechanism that allows buyers and sellers to join
what is a factor market?
market where factors of production are bought and sold
what is a product market?
market where goods and services are bought and sold
