The Nature of Commerce

Question 1

Consumer

Answer 1

A person who purchases goods and services to satisfy needs and wants.

Example: Buying groceries at a supermarket or paying for a haircut.

Question 2

Needs vs Wants

Answer 2

Needs are essential for survival (food, shelter), while wants improve quality of life (designer shoes, video games).

Example: Water is a need, but soft drinks are a want.

Question 3

Goods vs Services

Answer 3

Goods are tangible products, while services are actions performed to meet consumer needs.

Example: Buying a car (good) vs paying for car repair (service).

Question 4

Scarcity

Answer 4

Limited resources force consumers to make choices.

Example: Choosing between spending money on entertainment or saving for a holiday.