8.1 Economic Wants

What are the economic concepts that apply to satisfying economic wants?

Economic wants are the desire for scarce material goods and services.

Some concepts that apply to satisfying economic wants include...

1) Utility: the ability of a good or service to satisfy a want. There are four types of utilities that exist--form, place, time and possession.A producer is someone who creates utility.

2) Factors of production: when creating useful goods and services, the producer uses four basic resources...

A. Natural resources- anything nature provides.

B. Labor- The human effort that goes into the production of goods and services

C. Capital goods - building , tools, machines, other equipment.

D. Entrepreneurship is the fourth factor of production that brings together all of the other three factors through starting a business