Goods And Services

Question 1

What are economic goods?

Answer 1

*tangible products that satisfy human needs or wants
*have a value in the marketplace.

Question 2

What are the characteristics of economic goods?

Answer 2

SUOE
1. Scarcity
2. Utility: Provide satisfaction or benefit to consumers.
3. Opportunity Cost: Resources used for one good are not available for others.
4. Exchangeable: Can be bought and sold in the market.

Question 3

What are the types of economic goods?

Answer 3

CCDNP
1. Consumer Goods: Used directly by consumers
2. Capital Goods: Used to produce other goods
3. Durable Goods: Last over time
4. Non-Durable Goods: Consumed quickly
5. Public Goods: Non-excludable and non-rivalrous

Question 4

What are examples of economic goods?

Answer 4

Clothing, cars, houses, electronics, and machinery.

Question 5

What are economic services?

Answer 5

• intangible activities or benefits that satisfy human needs or wants
  *produced by people, businesses, or the government.

Question 6

What are the characteristics of economic services?

Answer 6

IIPV
1. Intangibility: Cannot be physically touched or stored.
2. Inseparability: Production and consumption happen simultaneously.
3. Perishability: Cannot be stored for later use.
4. Variability: Quality can vary based on provider.

Question 7

What are the types of economic services?

Answer 7

PBP
1. Personal Services: Benefit individuals
2. Business Services: Support business operations
3. Public Services: Provided by the government

Question 8

What are examples of economic services?

Answer 8

*haircut
*legal consultation
*taxi ride

Question 9

What determines the value and pricing of goods and services?

Answer 9

SCU
1. Supply and Demand: Prices are influenced by market forces.
2. Cost of Production: Resources and time spent affect pricing.
3. Utility: Value depends on consumer satisfaction derived from the good or service.

Question 10

What is the difference between necessities and luxuries?

Answer 10

Necessities are essential for survival (e.g., food), while luxuries are non-essential but desirable (e.g., designer clothes).

Question 11

What is the difference between private goods and public goods?

Answer 11

Private Goods: Rivalrous and excludable.
Public Goods: Non-rivalrous and non-excludable.

Question 12

Why is understanding economic goods and services important?

Answer 12

RME
*resource allocation
*meeting consumer needs
*economic growth through production and consumption.