IB Economics

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  • Created by: Randy
  • Created on: 08-04-13 02:54

Foundations of Economics (1)

  • Define, give examples of, and distinguish between, goods and services; needs and wants; economic goods and free goods
    • Economic good: a good in which opportyunity costs are involved in consumption and are relatively scarce
      • ex.: fresh food, clothing, cars
    • Free good: a good in which no opportunity cost is involved in consuption and is not relatively scarce
      • ex.: air, salt water
    • Need: good necessary for survival; Want: good necessary for enjoyment
    • Goods: physical objects that are capable of being touched
      • vegetables, motorcars
    • Services: intangible things that cannot be touched
      • repairs
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