This document defines key economic concepts including goods, services, macroeconomics, microeconomics, and types of goods and services. It explains that economics is the study of how people use scarce resources to satisfy needs and wants. It distinguishes between macroeconomics, which examines changes on the whole economy, and microeconomics, which examines effects on individual parts like businesses, households, and workers. It defines goods as products made or grown and services as jobs that help people. It categorizes goods as durable, non-durable, and free goods and describes examples of each. Finally, it instructs readers to make a list of goods and services they consume in groups of three with all names.

1. EconomicsIs the study of how people choose to use scarce resources to satisfy their needs and wants Several Questions What are goods and services What are economic resources Why must we make economic choices What is the cost of every choice What do economist do

2. MacroeconomicsSome problems involve the impact of changes on the economy as a whole rather than on an individual part. For example, what will be the effect of an increase in federal spending on consumer spending, and the federal budget? Microeconomics Some problems involve the effects of economic forces upon individual parts of the economy, such as business firms, households, and workers. For example, what will to a firms sales if they increase prices

3. Goods and Services Goods Are products that people make or grow. There are many kinds of goods that people want or need. Examples of Goods Food, drink, clothes, houses, bikes, cars, and gasoline

4. Services Services Services are jobs that people do to help other people. A doctor does a service by helping people to get well. A teacher does a service by helping students to learn We also define goods and services into whether they are necessities or luxury items. Necessities are items we must have. Luxury items are things that we can live without

5. Services Today we talk about the services industries. As manufacturing has decreased services have come to play a greater part in the U.S. economy. We have professional services, like accountants, Lawyers, any type of doctor. These services can be extremely expensive. Lawyers often charge $300 an hour. Normally, these services are licensed to protect the public People like car mechanics and plumbers(trades) are considered to be skilled services, we call them skilled trades. They can charge from $70 to $100 an hour.

6. Services Many service jobs are considered to be unskilled and semi-skilled. Many service jobs are retail sales jobs. Often they are done by younger unskilled workers. These jobs tend to be the lowest paying jobs in the economy. Unfortunately, they are also the jobs the most common jobs being created in today’s economy.

7. Goods Durable Goods Is a good that does not quickly wear out. One that yields satisfaction or utility over time rather than being consumed quickly. Examples , include cars, household goods, home appliances Non-Durable Goods They may be defined either as goods that are immediately consumed, or that have a lifespan of less than 3 years. Examples, cosmetics, food, fuel, office supplies, paper, clothing

8. Free Goods Free goods are goods that are readily available and in sufficient quantity to satisfy all wants. That are not that many free goods, for example: air, ocean water, and sand. Instructions Make a list of goods and service that you or your family consume. Work in groups of three, and place all your names on it.