Consumer choice and demand Flashcards
1
Q
Define economics
A
Economics is the study of people’s behaviour when faced with limited means and unlimited wants
2
Q
Define needs
A
Needs are things we must have in order to survive
3
Q
Examples of needs
A
Water, shelter, food
4
Q
Define want
A
Wants are things we desire but are not essential for survival
5
Q
Examples of wants
A
new iphone, junk food
6
Q
Define free good
A
Free goods are goods or services where enough is available to satisfy the desire for them (abundant), therefore users do not need to pay for them
7
Q
Examples of free goods
A
sunshine, rain, air
8
Q
Define economic goods
A
Economic goods are goods or services where there is not enough to satisfy the desire for them (abundant). Therefore Users need to pay for them
9
Q
Examples of economic goods
A
food, clothes, car
10
Q
A
