Needs and Wants, Goods and Services
Needs - things that are essential to survive: food, clothing, shelter etc..
Wants - things that we want, but CAN survive without: a holiday etc..
But we do not have the resources, so we choose what we use our resources for.
This is known as the ECONOMIC PROBLEM!
Evertime we make a choice, there is a COST.
This is known as OPPORTUNITY COST!
Goods - things that you can touch and see: sunglasses, car etc..
Services - things that you CANNOT touch, but are provided: fireman, window cleaner etc..
There are two types of goods and services:
Consumer goods and services: single use e.g chocolate bar
durable use e.g chair
Producer good and services: single use e.g raw materials
durable use e.g machinery
Factors of Production
LAND - natural resources: forests, sea
they will use the