Basic Concepts of Economics — Flashcards

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A want is a desire to acquire something, along with the willingness to put in an effort to get it. In economics, a want is not just a wish; it becomes a want only when effort is involved.

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Desire is the wish to have something. Want is an effective desire for a particular thing that can be satisfied by making an effort to acquire it. For example, wishing for a bike is a desire; trying to…

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Human wants are unlimited because one want leads to another and there is no final end to them. They are competitive because the means to satisfy them are limited, so all wants cannot be satisfied at t…

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Complementary wants are wants for goods that are used together. One item has little or no use without the other. Examples include pen and ink, or car and petrol.

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Human wants are classified into necessaries, comforts, and luxuries. Necessaries are essential, comforts make life easier, and luxuries are used for a luxurious life. Necessaries are further grouped i…

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In economics, all tangible things with value that satisfy wants are called goods. This is broader than ordinary use, because economics includes all valuable things that satisfy wants, not only physica…

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Material goods can be seen or touched and have a definite shape and size, such as books, cars, scooters, clothes, and furniture. Non-material goods cannot be touched or seen, but they satisfy wants; t…

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Economic goods are those that are scarce in relation to demand and require resources to produce. They are bought and sold in the market. Food, clothing, cars, electronics, and furniture are examples.