Basic Economic Terms Needs:this is a basic requirement for survival. People have basic needs like food, clothing and shelter. Wants:this is a means of expressing a need. For example, food is a basic need. However, you might "want" pizza, a salad, etc. You choose how to meet your need for food. Free products:goods which are so plentiful that they have no price. Sunshine is a free good. Economic products:goods and services which are useful, relatively scarce and transferable to others. Economic products are scarce so they command a price. Consumer good:a good that is intended for final use by an individual. If you go to the store and buy a pair of pants to wear, the pants are a consumer good. Capital good:a good used to make another product. An oven in a bakery is a capital good because it is used to bake bread that the bakery sells. The oven is used to produce another good (bread). Durable goods:goods that last three years or more.
