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After eating your Baby Ruth…. On a scale of 0 to 5, how much satisfaction did that Baby Ruth give you? (If you do not like Butterfingers or cannot eat it due to allergies, diabetes, etc., DO NOT EAT IT and give it a zero). Goods, Services, and Other Key Economic Terms. Goods. Types of Goods
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After eating your Baby Ruth… On a scale of 0 to 5, how much satisfaction did that Baby Ruth give you? (If you do not like Butterfingers or cannot eat it due to allergies, diabetes, etc., DO NOT EAT IT and give it a zero)
Goods Types of Goods - Consumer Good: Intended for use by individuals - Capital Goods: Used to manufacture other goods and services
Services • Service: Work that is performed for someone • A service is something intangible, i.e. something you cannot touch.
Utility • Utility = The capacity for something to be useful and provide satisfaction • Scientifically immeasurable
Utility Why is utility immeasurable? Baby Ruth! • Utility may vary from one person to the next, e.g. Marilyn Manson concert tickets may not provide utility to a lover of classical music.
Value • Value = Worth of something that can be expressed in dollars and cents. • Scarcity AND utility are required for an item to have value. • Why both? • How do both affect the value of something?
Quick Review • A product that is made for individual use is known as a _______________________ • Intangible work that is performed for someone is known as a _______________ • The amount of satisfaction something gives an individual is known as _______________ • Why is utility immeasurable? • What is needed for something to have value? Consumer good service utility Different for each person Scarcity & Utility
