Explain the relationship of wants to economic goods and services. Explain how economic goods and services are classified. OBJECTIVES A B.

Explain the relationship of wants to economic goods and services.

Explain how economic goods and services are classified.

OBJECTIVES

A

B

Explain the relationship of wants to economic goods and services.

Objective A

A Want Is a...

desire, craving, wish, or longing for something that is lacking.

Things I Want...

a new baseball glove and tickets to see a

Cincinnati Reds game

Characteristicsof Wants

Unlimited

Variable

Competing

Economic Wants

Require people to spend money to satisfy them

Noneconomic Wants

Can be satisfied without spending money

Goods and Services

...things that satisfy people’s wants

Characteristics of Goods

Physical object

Useful

Scarce

Transferable

Useful

Scarce

Transferable

Intangible

Characteristics of Services

Economic Goodsand Services

May be paid for directly when consumers make purchases

May be paid for indirectly through tax dollars

Reasons Why People Can’tHave Everything They WantReasons Why People Can’t

Have Everything They Want

Reason #1

It takes money to obtain and to produce goods and services.

Reason #2

Consumers and producers must make choices about how to spend their monies.

Reason #3

Consumers communicate their wants to producers as they purchase or fail to

purchase goods and services.

Reason #4

American producers should keep in mind that people buy goods and services in order to

satisfy their wants.

Reason #5

What if consumers decide not to purchase anything but necessities?

Explain how economic goods and services are classified.

Objective B

Broad Classifications ofGoods and Services

Consumer goods and services

Industrial goods and services

Consumer Goods and Services

Medicine Food Clothes Car maintenance Furniture Phone service Photo developing

Industrial Goodsand Services

Raw materials Duplicating services Parts Equipment repair Office supplies Equipment Buildings

Is a Computer a Consumeror an Industrial Good?

It depends on who buys it and for what purpose.

Why ClassifyGoods and Services?

The classifications can be used as a guide for marketing planning.

Classifications ofConsumer Products

Convenience Shopping Specialty

Classifications ofIndustrial Products

Materials

Parts

Installations

Equipment

Supplies

AcknowledgementsAcknowledgements

MarkED

Digital-based photography sources:

DiAMAR Portfolios: People and Lifestyles CDs;Volume 3OBJ A: #PEO3_21Photos copyright 1995 DiAMAR Interactive Corp., all rights reserved.600 University St., 1701 One Union Square, Seattle, WA 98101-1129

DiAMAR Portfolios: People and Lifestyles CDs;Volume 7OBJ A: #PEO7_53Photos copyright 1996 DiAMAR Interactive Corp., all rights reserved.600 University St., 1701 One Union Square, Seattle, WA 98101-1129

Digital-based photography sources:

DIGITAL STOCK CORPORATION;Business & Industry 1OBJ B: #096Photos copyright 1995 Digital Stock Corp., all rights reserved.400 South Sierra Ave., Solana Beach, CA 92075

DIGITAL VISION;People in BusinessOBJ B: #052042CPhotos copyright 1997 Digital Vision Ltd.; all rights reserved. Image Club Graphics, a division of Adobe Systems Inc. 833 4th Ave., SW, Suite 800 Calgary, AB, Canada T2P3T5

PHOTO ESSENTIALS;Corporate ImagesOBJ B: #44, #71Photos copyright 1994-1996 PhotoEssentials, Canon Information Systems Research Australia, all rights reserved. 1 Thomas Holt Drive, North Ryde NSW 2113, Australia

Digital-based photography sources:

PHOTO ESSENTIALS;Still Life ArtOBJ B: #85Photos copyright 1994-1997 PhotoEssentials, Canon Information Systems Research Australia, all rights reserved. 1 Thomas Holt Drive, North Ryde NSW 2113, Australia

STOCKBYTE;Consumers & RetailingOBJ A: #1760CON, #1762CONOBJ B: #1831CONPhotos copyright 1997 Stockbyte, all rights reserved. World Scanning Centre, Tralee, County Kerry, Ireland

COPYRIGHT:

All photographic digital images on this CD are owned by the aforementioned photographic sources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.