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.
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.