Changes

That definition has several terms that cry out definitions of their own, such as "social science" and "goods and services,"  You might acquire a habit of having a dictionary handy to look up words when you need to, and even when you think you know the meaning in order to see how the dictionary defines it.

That definition has several terms that cry out definitions of their own, such as "social science" and "goods and services,"  You might acquire a habit of having a dictionary handy to look up words when you need to, and even when you think you know the meaning in order to see how the dictionary defines it.

Perhaps we can improve on that definition of economics.  But let's first try to define what "goods and services" are, because they are found in the definition of "economics".  At first glance, "goods and services" are the things and activities that someone is willing to purchase.  Maybe you are not willing to pay for them, but someone is.  Essential goods include food, clothes, cars, and books.  We all pay in some way for those.  The services that we need include help by doctors, dentists, teachers and barbers.  A "good" is a tangible "thing"; a "service" is an activity.

Perhaps we can improve on that definition of economics.  But let's first try to define what "goods and services" are, because they are found in the definition of "economics".  At first glance, "goods and services" are the things and activities that someone is willing to purchase.  Maybe you are not willing to pay for them, but someone is.  Essential goods include food, clothes, cars, and books.  We all pay in some way for those.  The services that we need include help by doctors, dentists, teachers and barbers.  A "good" is a tangible "thing", something you can touch; a "service" is an activity, like a taxicab driver transporting someone.

    

    

The meaning of "goods and services" extends beyond our basic needs.  We do not '''''need''''' to go to a restaurant or a Yankees baseball game, or see a movie.  We do not '''''need''''' to buy ice cream in order to survive.  Sometimes people buy things like fancy clothes or cars in order to impress others.   

The meaning of "goods and services" extends beyond our basic needs.  We do not '''''need''''' to go to a restaurant or a Yankees baseball game, or see a movie.  We do not '''''need''''' to buy ice cream in order to survive.  Sometimes people buy things like fancy clothes or cars in order to impress others.  Candy is a "good"; entertainment is a "service".

So the meaning of "goods and services" goes far beyond what people need, and includes anything they want, and that some people are willing to pay for.  Note that not everything people want is something they are willing to pay for.  We all want air in order to breathe, but we are not willing to pay for air.  "Air" is not a "good or service."  We all want friendship too, but that's not something that can be purchased.  We all want the Yankees to win the World Series (well, not all of us do!), but we cannot directly buy that either.  At most we can buy tickets in exchange for the Yankees' playing a game and ''trying'' to win the World Series.  That "service" by the Yankees is a form of entertainment, like a music rock concert or a movie.

So the meaning of "goods and services" goes far beyond what people need, and includes anything they want, and that some people are willing to pay for.  Note that not everything people want is something they are willing to pay for.  We all want air in order to breathe, but we are not willing to pay for air.  "Air" is not a "good or service."  We all want friendship too, but that's not something that can be purchased.  We all want the Yankees to win the World Series (well, not all of us do!), but we cannot directly buy that either.  At most we can buy tickets in exchange for the Yankees' playing a game and ''trying'' to win the World Series.  That "service" by the Yankees is a form of entertainment, like a music rock concert or a movie.

Reminder: if you just cannot figure out answers to this or any other homework assignment in this class, then try looking at the model answers to similar questions from two years ago as posted here: http://www.conservapedia.com/Economics_Lectures

Reminder: if you just cannot figure out answers to this or any other homework assignment in this class, then try looking at the model answers to similar questions from two years ago as posted here: http://www.conservapedia.com/Economics_Lectures

1.  In three sentences or less, what do you hope to learn in this course?

1.  Give an example of a "good" not in the lecture, and an example of a "service" not in the lecture.

2.  Imagine that your family has two options for dinner:  eat at home, or go out to eat at McDonald's.  Which option incurs more transaction costs?  Identify two specific transaction costs.  Which option is cheaper for your family, and why?

2.  Imagine that your family has two options for dinner:  eat at home, or go out to eat at McDonald's.  Which option incurs more transaction costs?  Identify two specific transaction costs.  Which option is cheaper for your family, and why?