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Chapter 1
Sydney MarshallEconomic Systems
Needs and Wants
• Wants1. Vacation, Trip to Hawaii2. New Car, Mercedes3. New Puppy
Needs1.Food, Water2.Transportation, Car3.Shelter, House
• Goods are things you can see and touch. They are the products you can purchase to meet your wants and your needs.
Example(s): An apple from the store.
New clothes.
• Services are the activities that are consumed at the same time they are produced.
• Intangible (no physical characteristics)• You use them to satisfy wants and needs however,
they must be provided for you at the time you want to consume them.
Example(s): restaurant service
the mailman
• Natural Resources are raw materials supplied by nature.
Examples: The Earth contains oil, minerals, and the nutrients to grow crops and timber to feed animals. Rivers, lakes, and oceans are the source of both food and water .
• People producing goods and services.Examples: (Chicken Noodle Soup) = Farmers raise livestock and crops,
Factory workers and managers use equipment designed by engineers and manufactured by other businesses to process the food.
~Truck Drivers~Sales people~Advertisers~Grocery store employees
• The products and money used in the production of goods and services
Example: money, trucks, buildings, equipment, and supplies
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