Fundamental Concepts and Terminologies

Should possess usefulness, Should be scarce, Should be capable of exchange, Should have durability

Wealth must be useful, scarce, exchangeable, and durable. If something is unlimited or free, it doesn't qualify as economic wealth.

Public garden, Street lights, National defense

Public goods are characterized by joint consumption and non-excludability. Multiple people can use them simultaneously without reducing availability for others.

Land, Labour, Capital, Entrepreneur

The four classical factors of production are Land (natural resources), Labour (human effort), Capital (man-made aids), and Entrepreneur (coordinator and risk-taker).

Producer good

A tractor is used in the production process to create final goods (crops). It doesn't directly satisfy consumer wants but helps in producing goods that do.