Explain the relationship of wants to economic goods and services. Explain how economic goods and services are classified. OBJECTIVES A B

Explain the relationship of wants to economic goods and services. Objective A

A Want Is a... desire, craving, wish, or longing for something that is lacking.

Things I Want... a new baseball glove and tickets to see a Cincinnati Reds game

Characteristics of Wants ä Unlimited ä Variable ä Competing

Economic Wants u Require people to spend money to satisfy them

Noneconomic Wants u Can be satisfied without spending money

Goods and Services...things that satisfy people’s wants

Characteristics of Goods Ê Physical object Ë Useful Ì Scarce Í Transferable

... productive acts that satisfy economic wants Services

Ê Useful Ë Scarce Ì Transferable Í Intangible Characteristics of Services

Economic Goods and Services u May be paid for directly when consumers make purchases u May be paid for indirectly through tax dollars

Reasons Why People Can’t Have Everything They Want

Reason #1 It takes money to obtain and to produce goods and services.

Reason #2 Consumers and producers must make choices about how to spend their monies.

Reason #3 Consumers communicate their wants to producers as they purchase or fail to purchase goods and services.

Reason #4 American producers should keep in mind that people buy goods and services in order to satisfy their wants.

Reason #5 What if consumers decide not to purchase anything but necessities?

Explain how economic goods and services are classified. Objective B

Broad Classifications of Goods and Services u Consumer goods and services u Industrial goods and services

Consumer Goods and Services u Medicine u Food u Clothes u Car maintenance u Furniture u Phone service u Photo developing

Industrial Goods and Services u Raw materials u Duplicating services u Parts u Equipment repair u Office supplies u Equipment u Buildings

Is a Computer a Consumer or an Industrial Good? It depends on who buys it and for what purpose.

Why Classify Goods and Services? The classifications can be used as a guide for marketing planning.

Classifications of Consumer Products Convenience Shopping Specialty

Classifications of Industrial Products u Materials u Parts u Installations u Equipment u Supplies

Acknowledgements MarkED

Digital-based photography sources: DiAMAR Portfolios: People and Lifestyles CDs; Volume 3 OBJ A: #PEO3_21 Photos copyright 1995 DiAMAR Interactive Corp., all rights reserved. 600 University St., 1701 One Union Square, Seattle, WA DiAMAR Portfolios: People and Lifestyles CDs; Volume 7 OBJ A: #PEO7_53 Photos copyright 1996 DiAMAR Interactive Corp., all rights reserved. 600 University St., 1701 One Union Square, Seattle, WA

Digital-based photography sources: DIGITAL STOCK CORPORATION; Business & Industry 1 OBJ B: #096 Photos copyright 1995 Digital Stock Corp., all rights reserved. 400 South Sierra Ave., Solana Beach, CA DIGITAL VISION; People in Business OBJ B: #052042C Photos copyright 1997 Digital Vision Ltd.; all rights reserved. Image Club Graphics, a division of Adobe Systems Inc th Ave., SW, Suite 800 Calgary, AB, Canada T2P3T5 PHOTO ESSENTIALS; Corporate Images OBJ B: #44, #71 Photos copyright PhotoEssentials, Canon Information Systems Research Australia, all rights reserved. 1 Thomas Holt Drive, North Ryde NSW 2113, Australia

Digital-based photography sources: PHOTO ESSENTIALS; Still Life Art OBJ B: #85 Photos copyright PhotoEssentials, Canon Information Systems Research Australia, all rights reserved. 1 Thomas Holt Drive, North Ryde NSW 2113, Australia STOCKBYTE; Consumers & Retailing OBJ A: #1760CON, #1762CON OBJ B: #1831CON Photos copyright 1997 Stockbyte, all rights reserved. World Scanning Centre, Tralee, County Kerry, Ireland

COPYRIGHT: All photographic digital images on this CD are owned by the aforementioned photographic sources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.