Chapter 1: Problem 1

Define: a. tangible b. intangible c. goods d. utility e. services f. land g. labor h. capital i. entrepreneurship

Short Answer

Expert verified

Tangible refers to physical assets, intangible refers to non-physical assets, goods are consumable products, utility is the satisfaction received from consumption, services are intangible products provided by people, land refers to natural resources, labor refers to human effort in production, capital is the financial resources for production, entrepreneurship refers to taking financial risks to build a business.

Step by step solution

Defining Tangible

Tangible refers to anything that can be physically touched or perceived by touch. This generally involves physical properties or assets, like buildings, equipment, or products.

Defining Intangible

The term 'Intangible' represents the opposite of tangible. It refers to things that cannot be perceived by the senses, generally non-physical assets or qualities. For example: copyrights, brand reputation or goodwill in a company.

Defining Goods

Goods are products or commodities that are tangible and can be consumed or used. Examples include cars, food items, clothing, etc.

Defining Utility

In the context of economics, utility means the satisfaction or perceived value a consumer gets from consuming a good or a service.

Defining Services

Services are intangible products provided by other people. They involve activities that are done for others for a fee, such as cleaning, teaching, and delivering.

Defining Land

In terms of economics, land denotes all natural resources provided by nature and includes fields, forests, minerals, water resources etc.

Defining Labor

Labor refers to the human effort - physical or mental - that is put into the production of goods or services. This can be measured in terms of hours worked or tasks completed.

Defining Capital

Capital refers to the financial resources or assets necessary for the production of goods and services. It can be physical, like machinery and buildings, or financial, like money.

Defining Entrepreneurship

Entrepreneurship refers to the activity of setting up a business or businesses, taking on financial risks in the hope of profit. It is the ability to create and build something from practically nothing.

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