Economic Goods And Services Flashcards
Want
Desire for things
Economic want
If you need money to satisfy it
Noneconomic want
If you don’t need money satisfy it
Economic good
Satisfies economic wants, tangible, scarce, transferable
Economic services
Satisfy economic wants, useful, scarce, transferable, not tangible
Consumer
People who use goods and services
Human wants are limited or unlimited
Unlimited
If a good or service is scarce, consumers will usually be
Willing to pay money to get it
Economic “votes” are cast by consumers each time they
Make a purchase
Producers respond to consumers’ positive economic “votes” by
Increasing production
Market research
Devoting time and money to find out exactly what consumers want
Unlimited consumer
Anyone who personally uses a good or service to satisfy their wants-the final user
Producers
The people who make or provide goods and services
Raw materials
Materials needed to make the finished products
Convenience products
Consumers purchase quickly and without much thought it effort, usually low-cost items.
Staple items
Bread or milk (convenience product)
Impulse items
Candy bar at the checkout or a quick car wash on the way home (convenience product)
Shopping products
When consumers shop around to find the best quality, price, or service.
ex. Furniture, computers, college educations
Specialty products
Items with special or unique characteristics that consumers are willing to exert special efforts to obtain
Unsought products
Are bought out of the adversity instead of desire.
Ex. Coffin, crutches, life insurance
What are all the consumer products
Convenience, shopping, specialty, and unsought
What are all the industrial products
Materials, parts, installations, equipment, and supplies
Materials
Items become part of a finished product after being processed, raw materials.
Ex. Wheat, trees, gold
Parts
These items will become part of a finished product but don’t require any additional processing.
Ex. Bolts, screws, tires
