| A | B |
|---|
| scarcity | The condition that results from society not having enough resources to produce all the things that people would like to have. |
| Economics | The study of how people try to satisfy seemingly unlimited and competing needs and wants through the careful use of relatively scarce resources. |
| Need | A bsic requirement for survival such as food, clothing, and shelter |
| durable good | a good that lasts 3 years or more when used on a regular basis. |
| examples of durable goods | tools, tractors, and automobiles |
| nondurable good | An item or good that lasts fewer than 3 years when used on a regular basis. |
| examples of nondurable goods | Food, writing paper, and most clothing |
| Consumer good | A good that is intended for final use by iindividuals such as shoes, shirt, or automobile. |
| capital good | A tool or good such as machinery or equipment that is used by businesses to produce other products. |
| want | Something that we would like to have, but it is not necessary for survival. |
| Good | A tangible economic product that is usefu, transferable to others, and used to satisfy want and needs. |
| service | or labor performed for someone such as haircuts, home repairs and forms of entertainment such as concerts. |
| value | Monetary value of a good or service as determined by the market. |
| paradox of value | apparent contradiction betwwen the high value of a nonesential item (Diamond) and the low value of an essential item such as water. |
| utility | ability or capacity of a good or service to be useful and give satisfactin to someone. |
| wealth | sum of tangible economic goods that are scarce, useful, and transferable from one person to another. Wealth excludes services. |
| TIINSTAFFL | There is no such thing as a free lunch |
| Gross Domestic Product | Monetary value of all final goods, services, and structuresproduced within a country's borders during a one year period. |
