ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Emergency fund
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needs
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Surplus
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wants
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Detailed explanation-1: -Necessity goods are product and services that consumers will buy regardless of the changes in their income levels, therefore making these products less sensitive to income change. They are necessity for life.
Detailed explanation-2: -The goods and services that are necessary for a living are called needs. Needs are the essential things that you need for survival, to live properly. Thus, it is important to satisfy these needs as if we don’t satisfy needs, we will not be able to live long. For example, when we are hungry, a need arises for food.
Detailed explanation-3: -Examples of goods are automobiles, appliances, and clothing. Examples of services are legal advice, house cleaning, and consulting services. The output of a business can lie somewhere between these two concepts. For example, a landscaping company could sell a homeowner a tree (goods) and also mow the lawn (a service).
Detailed explanation-4: -We must have food, water, air, and shelter to survive. If any one of these basic needs is not met, then humans cannot survive.
Detailed explanation-5: -Computers. Books. Notepads. Laptop bags. Water bottles. Cars. Jackets. Cell phones. More items