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I.
Economic Concepts
Capital goods are manufactured goods used to produce other goods and services. - Durable good goods that lasts >3 yrs - Nondurable good goods that lasts <3 yrs Service is a work performed for someone.
Group Activity
Durable Goods Nondurable Goods Services
1. List the goods and services that your group uses as consumers under the relevant heading. 2. For each durable and nondurable good, circle items that are capital goods. 3. Draw a square around items that are consumer goods.
I.
This, however, does not mean that services are not useful or valuable.
Which of the following has the most value and utility to your family? A. Automobile B. Kitchen appliances C. Television
II. Value, Utility, and Wealth The value of a good or service depends on its scarcity and utility. value refers to worth that can be expressed in dollars and cents.
Adam Smith, a Scottish social philosopher, pointed out
paradox of value contradiction of high valu and low value items III. Circular Flow of Economic Activity
Which investment we make today will generate higher returns in the future? A. Education B. Health-care C. Technology
Name Date Period Questions/Cues Notes: 1.2 Basic Economic Concepts IV. Productivity and Economic Growth
A nations economic growth is due to several facto When the circular flow becomes larger, there is economic growth. Productivity is the most important factor