Economic Vocabulary

All right, we're talking economy again. Just remind her that it could be this basic institution relating to learning how to spend and how it's made. Today we're going to be talking about of course. Required for survival. Your body will literally stop working without them. Once they're nice to have, they're extracts. They're things that sometimes we consider requirements of modern life, but our bodies will not physically stop working without them. So let's talk about some things. Basketball. Basketball is a nice to have. It's an extra, but it's not necessary for life. So it is a want. Headphones, headphones are also a want. Your body will not physically stop working without them. I know some of you may beg to differ. All right, we've got food. Food is a need. Food is required for survival. Your body will literally stop working without food. Okay? Shoes. Yes, shoes are a need. Jacket. Jacket is a need as well. Now you have to have this particular jacket and you don't have to have these particular shoes. Of course, all of this is based on where you live. But clothing that will protect you from what you live around is important, right? Like I'm not going to take my blue jeans and my T-shirt and try and go live in Siberia where it's freezing cold. I'm going to freeze to death, right? So your clothing does need to protect you from wherever you're at. That's called a modification, changing how you dress based on your environment. But you do need clothing to protect you from whatever you're around. A Llama pinata, it's a want a house. House is a need, okay? Now, it doesn't have to be a big huge house, but we do need some kind of shelter, whether it's an apartment, whether it is a shelter that someone might live in, whether it is a house, a mansion, maybe you live on a boat. I don't know. But you do need some kind of shelter from the elements from The Rain, the wind, that kind of thing. You need some kind of protection. Phone. A phone is a want. It is an extra. Your body will not literally stop working without it. Although some of you who are addicts are going to have a hard time with it. But your body will not physically stop working without a phone. How do we know? Well, for thousands and thousands of years, people live without them. So your body does not need a phone, even though it is a really nice extra. It's a really nice want. Water. Your body is over 75% water. If you don't have enough water, you will die. As a matter of fact, you can go much longer without food, then you can without water. You can only go a few days without water, and then you are in some serious serious trouble. So we have our needs, and these are required for survival, food, water, fill different food made. And our wants are wants are a nice to haves or our extras. Needs required for survival. Wants are nice to have in our extras. All right, when you talk about goods and services, goods are physical products for use. That means something you can touch. Services, an action somebody does for you. Let's talk about the difference, okay? You've got a paintbrush and a painter. Paint brush is a good. It is a physical product that you can use. You can touch a paintbrush. But painting, like when you hire somebody to paint your house and they're painting, you can't touch painting. You can pat the paint around the head, you can touch a paintbrush or the paint, but you can not physically touch painting, okay? So good is the paintbrush, service is the action of painting. Same thing here, we've got scissors. We got a haircut. The scissors in the comb are the good. They are a physical product you can touch. Haircut is a service. You can touch hair, you can touch scissors, but you can not actually touch haircut. That's an action somebody's doing for you. You go sit in the salon or the barbershop or whatever, and they cut your hair. Okay, that is a service. Last up, lawn mower in a yard guy, okay? Lawnmower is it good? Yard guy is he is performing a service, right? He's doing the yard. He is doing lawn work. You can touch the lawn mower. You can not touch yard work. You can touch the grass, you can touch the equipment, you can touch the tree, whatever, but service is an action. Yard work doing yard work isn't action, painting is an action. Hair cutting hair is an action, okay? So that's the difference between your goods, which are physical products for use. And services, which is an action someone does for you. Now, a couple more things when you talk about interdependence, that's a big word. What does it mean? Well, it means our line another. Why would people or groups have to bloom? Well, it's because of scarcity. Scarcity means not having enough, okay? So I'm going to tell you a little story. About scarcity and interdependence. You have this country called the United States. Hey, that's us. Go team. You have the United States and you have another country halfway around the world called Iraq. And we are 70% said, hey, we have a whole lot of bread. And not very much oil. Because we had all to grow wheat and to make bread and food. But we don't have a lot of oil we can drill for. That scarcity don't have enough oil. On the flip side, Iraq, because of where they're located, has a whole bunch of oil oil is used to make things like gasoline, plastics, all kinds of stuff. But they live in the middle of the desert so they don't have a whole lot of opportunity to grow wheat and things to make food. So they have a scarcity of bread. So we were like, hey, what if we trade them some of our bread and their scarcity of food goes away? And they trade us, some of their oil, and our scarcity of oil goes away. That's interdependence. We traded what we had for what they had so that both countries would have what they needed. Interdependence. Thanks for watching.