Important Terms Used Throughout Economics.

What is: 

• A Good?

- A good is any tangeable item. It is broken down into two types, which are:

1. Free Goods -these are readily available so that consumers don't have to make a sacrifice in order to use it. For example, sunlight or oxygen.

                                                     

      2. Economic Goods- this is one in which a sacrifice has to be made for it to be consumed. This is so because if we desire more of this good, we would have to pay the price it carries. For example, cell phones, cars, etc.
                                              

• A Service?

- A service any work or favour carried out for someone in exchange for money. It is consumed to satisfy human needs and wants. It is intangable. Examples are; transportation, insurance, health care, etc.
  
                                  

•   Opportunity Cost? 

- Opportunity Cost is the next best alternative ,sacrificed from among other competing options.for example, if you are on a diet and have to choose between an apple and a hamburger,you would choose the item that will be more beneficial to your situation.Therefore you will choose the apple and because the hamburger was forgone, it would be named as the 'Opportunity Cost'.

                                                             

• A Want?

- A want is any good or service that is desired to improve the quality of life but is not necessary for life.  example; a designer jeans versus simple clothing.

• A Need?

- A Need is any good or service that is essential for life.They are indeed required to lead a basic life. For example; food, clothing, shelter.

• Scarcity? 

- Scarcity is the economic condition where resources are insufficient to satisfy all of man's needs and wants. We, as humans, have unlimited needs and wants while there is limited resources available. This means that resources are scarce.

• Choice? 

- Choice is a decision that has to be made from a range of options.This is what leads to opportunity cost. Man cannot acquire all that he needs or wants, so making a choice is manditory in our daily lives.