Distinguish the following terms: 6mks a) Free goods and economic goods b) Consumer goods and producer goods c) Business wealth and personal wealth

Distinguishing Concepts.

a) Free goods  –  Those things which are given free by nature eg air.  Have utility but  no economic value.

Economic goods –  Those things which are scarce when compared to human wants and human effort required to obtain them.  Have utility and economic value (price)

b) Consumer goods         –  Goods meant for direct consumption and they satisfy economic wants may be  perishable or durable.

Produce goods           –  Goods that help in further production of consumer goods.  They  assist in  production eg machinery.

c) Business Wealth –  Goods of value (assets) that belong to a business eg. Premises.

Personal Wealth         –  Consists of items that belong to an individual person eg clothes,    TV,   etc.