Basic Concepts of Economics — Chapter Summary

Human wants are desires for goods

Human wants are desires for goods and services that can be satisfied only by making an effort to acquire them. Wants are unlimited, one want leads to

In economics

In economics, all tangible things with value that satisfy wants are called goods. Goods are classified as material and non-material, free and economic

Services are non

Services are non-material goods. They satisfy wants but cannot be touched or seen. They are produced and consumed at the same time and cannot be separ

Utility means want

Utility means want-satisfying power of a commodity. It is subjective, relative, abstract, and not the same as pleasure. Utility may be form, place, ti

Value in use means usefulness

Value in use means usefulness, while value in exchange means the rate at which one commodity is exchanged for another. Price is value expressed in mon