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In Economics people choose to satisfy their; needs, wants. To satisfy their needs & wants, people buy goods and services.
What is the differences between the four and give three examples for each one.
Needs (limited/few of): Necessary for survival. (Essentials). E.g first aid, food, water, shelter, suitable clothes shoes.
Wants (unlimited): Not necessary to live with. E.g New phone, books, movies, laptop, T.V
Goods: Tangible/Can see and touch them. E.g Bags, furniture, clothes, toys
Services: Intangible/cannot see + touch activities we pay for. E.g Transport, building, plumbing, insurance.
Income; income is money received by an individual from working,owning assets or as a transfer. These are the 3 sources of income. Give four examples for each of the sources.
1)Work: Wage=,per hour Salary=per annum/year Commission=% of sales Fees=particular service.
2)Ownership:
Property=rent
Savings=interest
Shares=dividends
Business=profits Copyright=royalties
Assets earn=capital gains.
3)Transfers: Social welfare benefits; Pensions; Inheritance; ACC (compensation); Pocket money/Allowance.
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