1 Scarcity

The abundance of resources to meet human needs

The fundamental economic problem facing all societies resulting from a combination of scarce resources and people's virtually unlimited needs and wants

The study of how wealth is distributed in society

A situation where resources are plentiful and needs are limited

Something we would like to have but is not necessary for survival

A tangible economic product that is useful

A basic requirement for survival, including food, clothing, and shelter

An economic product that is not transferable to others

Needs and Wants

Services and Requirements

Goods and Services

Tangible and Intangible

An item that wears out within a year of regular use.

A service that lasts for at least 3 years.

A good that lasts for at least 3 years when used regularly.

A consumable product that is used up quickly.

A washing machine

A car

Writing paper

A tractor

House

Book

Happiness

Education

Goods produced by consumers for personal use

Goods intended for final use by businesses

Goods intended for final use by consumers rather than a business

Services provided by businesses to consumers

A financial investment in stocks or bonds

A tool, equipment, or other manufactured good used to produce other goods and services

A professional service offered by a financial advisor

A type of currency used in capital cities

A smartphone

A haircut

A car

A refrigerator

Scarcity

Utility

Popularity

Complexity

A diamond has a very low monetary value, but water has a high value

Both diamonds and water have high monetary value

Water has a very low monetary value, but diamonds have a high value

Both diamonds and water have low monetary value

Stock market investments

Intellectual property like patents

Natural resources, factories, stores, houses, motels, theaters

Professional services like consulting

Lunch is always expensive.

Everything in life comes without a cost.

There are hidden costs associated with things that appear to be free.

Businesses do not use resources when they offer something for free.

To determine the best political party

To understand why the prices of some items are higher than others

To predict weather patterns

To study historical events