In the situation below, what is the economic term for my clothes and my transportation?I'm planning a business trip.  I boughtt clothes for the trip & my company aranged transportation. In...

In the situation below, what is the economic term for my clothes and my transportation?

I'm planning a business trip.  I boughtt clothes for the trip & my company aranged transportation. In economics what term is used 2 describe the clothes & trans.?

Answer choice given are: A. Resources, B. Goods & services, C. Wants & needs.

Anyway, to me, all the answer choices seem to be correct. I've been going back and forth between all the answers for so long. Thanks for any help.

Asked on by whoopyaz13

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

If these are your only options, just going by what you have said B is the best option.  A is not really correct and B is better than C.

These are not resources because resources are things that are used to make goods and services.  You are not using the clothes or the transportation to make a good or a service.  Resources have to be land, labor, or capital and these are not any of those.

So now we have to decide between B and C.  I would argue that wants and needs are conditions more than they are specific things.  I need things that I have to have to survive.  I want other things.  If you think about it like this, my wants and needs are not actual things.

There is no denying that the clothes are a good.  They are something tangible that you bought.  The transportation is a service.  It is not tangible but it had value.

Since we cannot deny that these are a good and a service, respectively, and since we can think of a way that they are not wants and needs, B is the best answer.

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