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Economics Ch. 1
Scarcity & Economic Choices
Term | Definition |
---|---|
scarcity | the fundamental problem facing societies resulting from the friction of unlimited wants & needs vs finite resources |
need | basic requirements for survival, including food, clothing, shelter |
want | items desired, but not necessary for survival |
good | a tangible economic product that is useful, transferable to others, and satisfies a need or want |
durable goood | an item that lasts for at least 3 years when used regularly |
non-durable good | an item that wears out or is used up in fewer than 3 years when used regularly |
capital good | tool or equipment that is used to produce other goods and services |
service | work or labor one performs for another for pay |
paradox of value | the contradiction between the high value of non-essential items and low value of essential items |
utility | the capacity of a good or service to be useful and provide satisfaction to a person (varies from person to person) |