Basic Concepts of Economics

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A want is an effective desire for a particular thing that can be satisfied by making an effort to acquire it. A want is different from a mere desire because it involves effort to get the thing needed.

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Human wants are unlimited because people have many wants, and new wants keep appearing as civilization grows. Wants do not end; after one want is satisfied, another usually appears.

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Human wants recur because they are satisfied only temporarily. For example, hunger returns after a meal, so food is needed again later.

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Utility is the want-satisfying power of a commodity. It means the ability of a good or service to satisfy human wants. Bread has utility because it satisfies hunger, and a book has utility because it …

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Utility is not the same as usefulness. A good may have utility even if it is harmful. For example, liquor may be harmful, but it still has utility for a person who wants it.

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Utility is subjective, so it cannot be measured in exact numbers. One view is that the amount of money a person is willing to pay for a commodity can show its utility. This idea is linked with Marshal…

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Economic goods are goods produced by scarce resources and capable of satisfying human wants. They have economic value or price because they are scarce. Examples include food, clothing, TV, cars, house…

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Non-economic goods are goods that have no economic value or price because they are available in unlimited quantity. Air, sunshine, water in the river, and sand in the desert are examples.