IB Economics (Notes: Foundation)
- Created by: Randy
- Created on: 09-04-13 03:51
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- 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
- Economic good: a good in which opportyunity costs are involved in consumption and are relatively scarce
- Define opportunity cost and understand its link to relative…
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