1. Goods, Services Value, Utility, and Wealth! CAD Jan 2011

2. GOODS AND SERVICES Goods and services is a term used to describe the many things people desire

3. Goods What is a good? o A good is a tangible commodity

4. Goods: Consumer Goods A Consumer good is a good intended to be used by individuals

5. Goods: Capital Goods A capital good is a good that is manufactured and used to produce other goods

6. Goods: Durable Goods A durable good is any good that lasts three years or more when it is used on a regular basis o Include both capital goods and consumer goods

7. Goods: Nondurable Goods A nondurable good is an item that lasts for less than three years when it is used on a regular basis

8. Services Services are work that is performed for others

9. Consumers People who use Goods and Services to satisfy wants and needs are called consumers People who use Goods and Services to satisfy wants and needs are called consumers Consumers play an important role in many, if not all, economies Consumers play an important role in many, if not all, economies

10. Consumers As consumers, people indulge in consumption. As consumers, people indulge in consumption. Consumption is the process of using up goods and services in order to satisfy wants and needs Consumption is the process of using up goods and services in order to satisfy wants and needs Some consumers carry the process of consumption to extreme limits Some consumers carry the process of consumption to extreme limits

11. Value Obviously, when discussing consumption, the old adage nothing in this world is for free comes into play Obviously, when discussing consumption, the old adage nothing in this world is for free comes into play Value refers to something that has a worth that can be expressed in dollars and cents Value refers to something that has a worth that can be expressed in dollars and cents Value is determined by how much someone is willing to pay for a particular item Value is determined by how much someone is willing to pay for a particular item

12. Value Why does something have value? Why are some things worth more than others?

13. Value Utility The capacity to be useful to someone The capacity to be useful to someone

14. Wealth Wealth is the sum of those economic products that are tangible, scarce, useful, and transferable from one person to another