BJU Economics Chapter 1
Economic Goods and Economic Services - ✔️✔️Those goods and services that bear a
positive economic cost (a price tag higher than zero).
Insatiability - ✔️✔️Everyone has unlimited wants.
Scarcity - ✔️✔️Everything is finite . . . limited in quantity.
Economic Cost - ✔️✔️The value people place on a good or service.
Good - ✔️✔️Any tangible thing that has a measurable life span.
Service - ✔️✔️Intangible items such as the labor of an accountant, performance of a
singer, and work of a teacher.
Nuisance Goods - ✔️✔️Goods that a consumer pays to have removed and are said to
bear a negative economic cost.
Recycling - ✔️✔️The service of turning various nuisance goods into economic goods.
Economics - ✔️✔️The commonsense science of how and why people, businesses, and
governments make the choices they do.
Free Goods and Free Services - ✔️✔️Goods and services with a price tag of zero.
Includes things such as wind on a windmill or stream on a water wheel.
Diamond Water Paradox - ✔️✔️The solution is dependent on the principle of intrinsic
value.
Subjective Value - ✔️✔️States that it is an object's usefulness to the buyer that
determines its worth.
Utility - ✔️✔️The amount of satisfaction the good or service provides the buyer.
Opportunity Benefit - ✔️✔️The satisfaction you receive from the choice you make.
Opportunity Cost - ✔️✔️The satisfaction you give up or the regret you experience for
not choosing differently.
Util - ✔️✔️An economic term for an imaginary unit of satisfaction.
Microeconomics - ✔️✔️Deals with choices made by individual units.
Economic Goods and Economic Services - ✔️✔️Those goods and services that bear a
positive economic cost (a price tag higher than zero).
Insatiability - ✔️✔️Everyone has unlimited wants.
Scarcity - ✔️✔️Everything is finite . . . limited in quantity.
Economic Cost - ✔️✔️The value people place on a good or service.
Good - ✔️✔️Any tangible thing that has a measurable life span.
Service - ✔️✔️Intangible items such as the labor of an accountant, performance of a
singer, and work of a teacher.
Nuisance Goods - ✔️✔️Goods that a consumer pays to have removed and are said to
bear a negative economic cost.
Recycling - ✔️✔️The service of turning various nuisance goods into economic goods.
Economics - ✔️✔️The commonsense science of how and why people, businesses, and
governments make the choices they do.
Free Goods and Free Services - ✔️✔️Goods and services with a price tag of zero.
Includes things such as wind on a windmill or stream on a water wheel.
Diamond Water Paradox - ✔️✔️The solution is dependent on the principle of intrinsic
value.
Subjective Value - ✔️✔️States that it is an object's usefulness to the buyer that
determines its worth.
Utility - ✔️✔️The amount of satisfaction the good or service provides the buyer.
Opportunity Benefit - ✔️✔️The satisfaction you receive from the choice you make.
Opportunity Cost - ✔️✔️The satisfaction you give up or the regret you experience for
not choosing differently.
Util - ✔️✔️An economic term for an imaginary unit of satisfaction.
Microeconomics - ✔️✔️Deals with choices made by individual units.
