econ note Flashcards
are those products or services that are directly used by the people to satisfy their wants. Examples of these are food, beverages, clothing, shoes, and gasoline.
Consumer goods and services
are intangible products or actions that are typically produced and consumed like haircuts, auto repairs, and landscaping.
customer services
are used to produce consumer goods and services or other producer goods.
Producer goods and services
are goods that are used by businesses to either produce other goods, or help in the provision of providing services. An example is machinery or tools, airplanes, buses, and factory buildings
Producer goods
are those products or services that are required to support human life’s needs and activities.
Necessities
means food, water, shelter, clothing, and medically necessary health care, including but not limited to health-related treatment or activities, hygiene, oxygen, and medication
Basic necessities of life
are those products or services that are desired by human and will purchased only after the required necessities have been satisfied.
luxuries
is the process of buying or using goods and services.
consumption
is an activity in which institutional units use up goods or services; consumption can be either intermediate or final. It is the use of goods and services for the satisfaction of individual or collective human needs or wants
consumption
is the creation of goods and is a major step in the series of economic processes that brings goods and services to the people.
production
is the process of making or manufacturing goods and products from raw materials or components.
production
takes inputs and uses them to create an output which is fit for consumption – a good or product which has value to an end-user or customer
production
is the sharing of the output among the resources used in the production or simply the division of the value of the output (goods) among the factors (or agent) in the production such as land, labor, capital and management.
distribution
It is to spread the product throughout the marketplace such that a large number of people can buy it.
distribution
is the quantity of a certain commodity that is bought at a certain price at a given place and time. It is simply the willingness and the ability of the buyer to pay for a product.
demand
is the amount of product made available for sale
supply
is the amount of money that is generated from a variety of sources including salary (amount of money paid on a regular basis)
income
is an entity which makes product, goods and services available to buyer or consumer in exchange of monetary consideration
seller
is the basic consuming or demanding unit of a commodity
buyer
Is the area or place where buyer and seller agrees to exchange a well- defined commodity
market
is the number of rival firms competing to sell similar goods or services to buyers
competition
occurs when there are many sellers of a certain goods or services and there are many buyers.
perfect competition
refers to a single seller and having many buyers (it is simply the opposite of perfect competition)
monopoly
exist when there is one seller and one buyer
bilateral monopoly
is a situation where a product or services is bought and used by one customer.
monopsony
refers to few suppliers of goods or services and that action by one supplier will inevitably result in similar action by the others.
oligopoly
exists when there are few sellers and few buyers
bilateral oligopoly
is a situation where a product or services is bought and used by few buyers and that the action of one buyer can buyer can have a significant impact on the price and market in general.
oligopsony
