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.
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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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